CAN-Mercosur continue negotiations to finish as planned

Lima March 19, 1999. Today the representatives of the Andean Community (CAN) and MERCOSUR ratified their interest to continue negotiating the "Agreement on Preferential Tariffs" as soon as possible and to exchange ideas to finish as planned on March 31, 1999, " by means of a speedier mechanism".

The declaration of the delegations of both blocks was made know today at the end of a three day meeting at the headquarters of the CAN General Secretariat in Lima.

The Aide Memoire signed by the Head of the CAN delegation, Felix Gerardo Arellano from Venezuela, and Brigido Lezcano Britos from Paraguay for MERCOSUR, stated that both parties "agreed to continue the ongoing negotiations as soon as possible, in order to have adequate time to conclude"

For this purpose the countries carried out the corresponding evaluations to define the date of the next meeting. The delegation of Brazil proposed that this be done between March 29 and 31, at Montevideo.

According to the schedule agreed previously, the negotiations to create a free trade zone between both blocks shall be done in two stages, the first of which expires on March 31st.

Lezcano Britos ratified that "MERCOSUR intends to conclude the netotiations within the term foreseen, although recognising the difficulty that this implies".

"We are about to conclude the negotiations and there is only a small effort pending on both parts", he declared, to continue making progress in the joint wish to establish a free trade zone in South America.

The head of the CAN delegation agreed with his counterpart from MERCOSUR in that the negotiations being carried out in Lima had been " difficult, but realistic" and stressed the interest of both parties to continue negotiations.

"We are aware" he said, that there are subjects which are extremely sensitive that demand highly creative solutions, and at a political level".

The aide memoire of the meeting also informed that the delegations "exchanged additional positions on the preferences under the scope of pending products". Sources of the meeting revealed that the subjects with a greater sensitivity belong to the siderurgical, textile, clothing manufacture and agricultural sectors.

The creation of a free trade zone between CAN and MERCOSUR will open a series trade opportunities for nine countries with a market larger than 310 million inhabitants and a Gross Domestic Product of 1.2 million dollars.