European and Latin American leaders face some tough decisions if they want to agree a free-trade accord by October, officials said Friday after the latest round of talks.
The Mercosur bloc -- including core members Argentina, Brazil, Paraguay and Uruguay as well as associate members Bolivia and Chile -- has been negotiating the accord with the European Union for four years.
After a week-long set of negotiations in Brussels, the EU underlined that political will would be needed to meet the October target set by both sides.
"Tough political decisions will have to be taken at the highest level on both sides," Herve Jouanjean, a deputy head of the EU's external relations department, told reporters.
The official said the next round of talks would take place on the margins of an EU-Latin American leaders' summit in Guadalajara, Mexico, at the end of this month.
The two sides said they would exchange "improved offers" in the coming days ahead of the Guadalajara summit.
Martin Redrado, minister for international trade in the Argentine foreign ministry, expressed optimism that a deal would be clinched.
"We stay confident that there could be an ambitious agreement in October," he said.
According to European sources, the EU is proposing improved access for Mercosur farm produce in a bid to win the Latin American bloc's support at the current round of World Trade Organisation talks.
Mercosur countries would in turn have to lower their industrial trade barriers, liberalise investment and open services and government procurement to EU suppliers.
The EU proposals, if accepted, risk splitting blocs of agricultural exporters and developing countries, led by Brazil, that have banded together at the WTO to defend their interests.
But Mercosur is keen to wrap up the EU accord with talks stalled on a Free Trade Area of the Americas including the United States.Agence France Presse:
