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Euros. 12 Uruguay had a surplus of 0.3 billion Euros, exporting 0.4 billion Euros and<br />
importing 0.1 billion Euros 13 , and Brazil attained a surplus of 7.4 billion Euros, with<br />
exports of 7.9 billion Euros and imports of 0.5 billion Euros. 14<br />
Above all, it is the so-called “agro-industry” in the four MERCOSUR countries<br />
that hope for better export opportunities as a consequence of a EU-MERCOSUR<br />
free trade agreement containing tariff-cuts and the reduction of European agricultural<br />
subsidies. However, given the current international trade regimes it is not clear that<br />
such results will automatically occur:<br />
“While these treaties force developing countries to extensively open their markets<br />
for EU-products there are still high European tariff-barriers for agricultural<br />
goods which are also being produced in the EU. The FTAs with South Africa,<br />
Mexico and Chile furthermore include security clauses for the case that a rapid<br />
rise of trade flows threatens the overall economic situation of a partner – in<br />
reality this leaves a way out for the EU to close their markets temporarily if a<br />
southern partner achieves a successful increase of exports.” 15<br />
Nevertheless, the four governments of the MERCOSUR agree that in the agricultural<br />
sector, for them the “central and essential” issue, success can be achieved.<br />
This, however, would require as a prerequisite “substantial concessions” from the<br />
EU negotiation team led by Karl Falkenberg. 16 Nonetheless, it should be mentioned<br />
that despite the priority that this interest is given, for example, by the strong Brazilian<br />
agricultural export lobby, one cannot assume a unified position of each particular<br />
government. Despite the expressed importance of the agricultural sector to the Brazilian<br />
government, even there, there are those with the opinion that the importance<br />
of the other issues of the marathon negotiations should not be neglected. Because<br />
of this there was a considerable amount of disagreement within the Brazilian government<br />
during the preparations of the FTAA-negotiation round from November 20-21,<br />
2003.<br />
The responsible authority on the Brazilian side for all internal MERCOSUR- as<br />
well as FTAA- and EU-MERCOSUR-negotiations is the Brazilian Foreign Ministry, It-<br />
12<br />
“Argentina”, DG Trade A2/CG/SG/WB, Brussels, June 2003.<br />
13<br />
“Uruguay”, DG Trade A2/CG/SG/WB, Brussels, June 2003.<br />
14<br />
“Brazil”, DG Trade A2/CG/SG/WB, Brussels, June 2003.<br />
15<br />
Own translation of the following original text: “Während die Abkommen die Entwicklungsländer zwingen, ihre Märkte<br />
weitgehend für EU-Produkte zu öffnen, bestehen gerade für viele der in der EU produzierten landwirtschaftlichen<br />
Erzeugnisse weiterhin hohe Zollschranken für Einfuhren aus dem Süden. Die Freihandelsabkommen mit Südafrika,<br />
Mexiko und Chile sehen darüber hinaus eine Sicherheitsklausel für den Fall vor, daß ein sprunghaftes Ansteigen der<br />
Handelsflüsse einen Sektor oder die gesamtökonomische Situation eines Partners bedroht - de facto eine Hintertür<br />
der EU, um ihre Märkte für den Fall einer erfolgreichen Exportsteigerung eines südlichen Partners vorübergehend<br />
zu schließen.” Taken from Schilder, Klaus (WEED): Regionalisierung unter neoliberalem Vorzeichen? Die politökonomische<br />
Geographie der EU-Handelspolitik, June 10, 2003, http://www.weed-online.org/artikel/18513.html.<br />
16<br />
The Brazilian Secretary of Agriculture repeatedly defines the agricultural sector as a priority: “primazia da questão<br />
agrícola”, see, e.g.; http://www.bbc.co.uk/portuguese/economia/story/2003/11/031112_amorimcmmla.shtml.<br />
15