Isaura Daniel, special envoy
Puerto Iguazú (Argentina) – Yesterday, during the preparatory meeting for the Mercosur Summit (the Mercosur is the customs agreement union including Brazil, Argentina, Uruguay, and Paraguay), to start officially on Wednesday (7), in the Argentine city of Puerto Iguazú, Argentina showed official interest in expanding trade with Egypt. This afternoon, the members of the South American bloc should sign a free trade framework agreement with the Arab country.
"Argentina still has little trade with Egypt," stated argentine Trade and Foreign Relations secretary Martín Redrado. The secretary has listed some products, including agricultural processed products, plastics, wood, leather and leather products, and auto parts, which Argentina is interested in selling to the region and that, therefore, may be included in the list to be negotiated with Egypt.
The signing will be the official release of discussions of a tariff preference agreement to be completed up to the end of the year. The Egyptian World Trade Organization (WTO) negotiator, Magdi Farahat, will be at Grand Hotel Iguazú, where the meeting will take place, to sign the document.
Apart from Egypt, the Gulf Cooperation Council (GCC) has requested the start of negotiations for a free trade accord with the Mercosur. Brazilian ambassador Filipe de Macedo Soares, under-secretary general for South America, stated yesterday, in Puerto Iguazú, that Brazil is interested in the accord. "There will also be a summit with the Arab countries next year," he said, referring to the meeting scheduled for January or February next year between the heads of state of Arab and South American nations.
The Arab Argentine Chamber of Commerce (CCAA) has also shown interest in seeing the treaty come true. "For Argentina, this would be very good," stated CCAA secretary general Sattam Al-Kaddour. He also recalled that export from Argentina to the Gulf countries has been grown between 10% and 20% in the last seven years.
To the United Arab Emirates alone, they have risen from US$ 90 million in 2002 to US$ 187 million last year. To Saudi Arabia, the growth was from US$ 60 million to US$ 100 million in the same period. Brazil also has both countries as important trade partners. Export to the United Arab Emirates reached US$ 551 million and to Saudi Arabia US$ 672 million in 2003. According to ambassador Soares, however, the request by the GCC should not be negotiated during the Summit in Puerto Iguazú.
Mercosur
Yesterday, technicians and diplomats from the four countries that are members of the Mercosur had the second day of preparatory meetings for the Summit, at Grand Hotel Iguazú. Talks have advanced, but there is still need for a final decision regarding most themes. There has not been approval, for example, of elimination of Certificates of Origin for goods circling among the Mercosur countries, having been made in member countries. A proposal for eliminating this certificate, thus reducing bureaucracy in trade transactions between the countries in the bloc, was made, but Uruguay has not agreed.
There was also no consensus regarding the end of the double charging of a common foreign tariff, avoiding, for example, that a product entering Brazil, travelling through Argentina, and ending up in Paraguay pay twice. This time, it was Paraguay that refused. "To them, customs revenues are very important," explained Macedo.
One of the topics that has advanced, but still under discussion, is the proposal that considers a product completely made in one country, although it uses material produced in other Mercosur countries.
The technicians also discussed the installation of a Permanent Court for Revision, in Assunción, Paraguay, to discuss controversial causes. Four judges, one appointed by each Mercosur member, would make the decisions, coordinated by a president.
Creation of the Court is practically defined, but a unanimous agreement about payment of the salaries of these judges must be unanimously made. According to Macedo, Uruguay suggested the remuneration.
Opening of the summit should take place today at 09:30 am. Those present at the opening event will include the ministers of Foreign Relations of the four Mercosur countries, Celso Amorim, from Brazil, Rafael Bielsa, from Argentina, Didier Opertti, from Uruguay, and Leila Rachid, from Paraguay.
