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Paraguay hosts Mercosur summit

June 24, 2011 - ASUNCION

When government heads of Mercosur countries -- Argentina, Brazil, Paraguay and Uruguay -- meet in the Paraguayan capital in June, expansion will be on the menu. Colombia, Bolivia, Chile and Venezuela are in the wings. Mercosur is working on preferential trade agreements (PTAs) with India and, controversially, the European Union. Meanwhile, China's anticipated deals with several South American countries could undermine Mercosur's economic clout.Britain's When government heads of Mercosur countries -- Argentina, Brazil, Paraguay and Uruguay -- meet in the Paraguayan capital in June, expansion will be on the menu. Colombia, Bolivia, Chile and Venezuela are in the wings. Mercosur is working on preferential trade agreements (PTAs) with India and, controversially, the European Union. Meanwhile, China's anticipated deals with several South American countries could undermine Mercosur's economic clout.Britain's Farmers Guardian newspaper reports that farming leaders have left Members of the European Parliament in no doubt about the "catastrophic impact" on the agriculture of European Union countries of trade liberalization with Mercosur countries. A deal on meat, sugar, fruit juice and maize sectors is under negotiation, and potential losses to the EU agriculture sector could amount to €13 billion (US $18.6 billion), according to the publication. Employment would also be affected as the EU agriculture sector provides for 28 million jobs in EU rural areas. reports that farming leaders have left Members of the European Parliament in no doubt about the "catastrophic impact" on the agriculture of European Union countries of trade liberalization with Mercosur countries. A deal on meat, sugar, fruit juice and maize sectors is under negotiation, and potential losses to the EU agriculture sector could amount to €13 billion (US $18.6 billion), according to the publication. Employment would also be affected as the EU agriculture sector provides for 28 million jobs in EU rural areas.

When government heads of Mercosur countries -- Argentina, Brazil, Paraguay and Uruguay -- meet in the Paraguayan capital in June, expansion will be on the menu. Colombia, Bolivia, Chile and Venezuela are in the wings. Mercosur is working on preferential trade agreements (PTAs) with India and, controversially, the European Union. Meanwhile, China's anticipated deals with several South American countries could undermine Mercosur's economic clout. Britain's Farmers Guardian newspaper reports that farming leaders have left Members of the European Parliament in no doubt about the "catastrophic impact" on the agriculture of European Union countries of trade liberalization with Mercosur countries. A deal on meat, sugar, fruit juice and maize sectors is under negotiation, and potential losses to the EU agriculture sector could amount to &euro13 billion (US $18.6 billion), according to the publication. Employment would also be affected as the EU agriculture sector provides for 28 million jobs in EU rural areas. India sees the potential for increasing bilateral trade from the present US $110 million to US $1 billion. Seeing Brazil's trade success with China, according to Forbes magazine, other Latin American economies are adapting their strategies. Chile, Mexico, Colombia and Peru have signed an agreement to integrate their economies and enhance trade ties with the Asia-Pacific region, and the deal goes into effect, the magazine notes, it will overshadow the continent's biggest trade zone, Mercosur.

Mercosur

Renewed pressure to resist Mercosur deal (Farmers Guardian 6 May 2011)

India's Focus LATAM gets fresh impetus (Business Line 6 May 2011)

South American Companies Look Forward To Chinese Dominance (Forbes 3 May 2011)

Date written/update: 2011-06-24