CAN – Argentina negotiation enters home stretch

Lima, March 11, 2000. The Andean Community (CAN) and Argentina have entered home stretch in their negotiation of a Fixed Tariff Preferences Agreement, reaching an accord on some 70 percent of the 2947 tariff subitems. This was borne out by the results of the IV meeting, held in Lima from March 7 to 10.

CAN Secretariat Director General Víctor Rico reported at the conclusion of the meeting that "substantial progress" had been made and that he was confident that the negotiations would be wrapped up at the next meeting, scheduled for March 27 to 31 in Buenos Aires.

Eduardo Brandes Salazar, the Andean Countries’ Coordinator, for his part, underscored the fact that this would fulfill the commitment made by the CAN Trade Ministers to conclude a Partial Scope Economic Complementarity Agreement on Fixed Tariff Preferences by the end of March, such being the deadline set for the validity of the bilateral agreements.

The Argentine Delegation, headed by María Teresa Fredolino, was in agreement that only one further meeting would be required to close this stage because of "important advances made at the Lima meeting in both the regulatory aspects and the negotiation of the products."

"All of these efforts constitute the initial step toward the accomplishment of our shared intention to establish a free trade area between the Andean Community and Mercosur," underscored the Argentine Foreign Ministry official.

The joint report issued at the conclusion of the Lima meeting expresses "the satisfaction [of the CAN and Mercosur] at the progress made at this meeting," "reiterates their intention to finish the negotiations" at the end of March, and states that they continued to work on "reviewing the products under negotiation in order to harmonize their positions and the analysis of the draft agreement."

The first negotiation meeting between the CAN and Argentina was held on October 28 and 29, 1999. This year the process was speeded up at the rate of one meeting a month: from January 26 to 28 and February 15 to 18, together with the present meeting, which closed yesterday, from March 7 to 10.

This agreement will be similar to that signed by the Andean Community and Brazil on August 12, 1999. Once the negotiation with Argentina concludes, the CAN plans to enter into contact with the two other Mercosur member countries –Uruguay and Paraguay— for the purpose of defining the steps to be taken in building a free trade area between the two blocs.