European agricultural industries are fearful of competitive or cheaper produce from Latin America stifling competition from European farmers. The European Union's negotiators, for their part, want an early accord to start benefiting from the region's growing spending power and vast consumer markets.

Mercosur nations have a combined population 267 million and a total gross domestic product of $2.9 trillion.

This week EU and Mercosur negotiations began a new round of talks in Brussels on finalizing the draft of an association and trade agreement. Although draft texts for signature were discussed there was little sign of an early agreement on the sensitive matter of freer Latin American meat exports.

European livestock farmers are up in arms over suggestions that in return for securing a Mercosur open-door policy on European exports to Latin America the EU may liberalize meat imports from Mercosur member states Argentina, Brazil, Paraguay and Uruguay as well as associate members Bolivia, Chile, Colombia, Ecuador and Peru and Venezuela, a full member awaiting ratification.

EU and Mercosur negotiators are to meet again in May before a planned summit of Mercosur leaders where aspects of the trade pact would be up for discussion before final signing.

Mercosur nations and the EU began talking about a new trade pact in May 2010 after a hiatus of several years. Despite official EU keenness to push the talks forward, individual European nations were hesitant because of angry response to the talks from farmers' representatives who see a pact with Latin America as a major threat to their interests.

European Commission officials at the talks said they would seek to accommodate views of the European agriculture sector, which remains bitterly opposed to any trade deal with Latin America.

The European Parliament threw its support behind EU farmers and members pledged to safeguard the interests of European agricultural lobbyists during the negotiation processes involving Mercosur members Argentina, Brazil, Paraguay and Uruguay.

European farmers are especially concerned over large-scale exports of beef from Latin America. Mercosur is the world's leading producer and exporter of beef.

However, Mercosur is aiming for a trade-off during the pact negotiation whereby it gets freer access to European markets in return for concessions to European businesses and exporters to Latin America.

earlier related report
EU to end long-standing anti-dumping taxes against China
Brussels (AFP) March 16, 2011 - The European Commission on Wednesday signaled the end of long-standing anti-dumping taxes levied against Chinese and Vietnamese shoes, ending a corrosive trading row between China and Europe.

"The commission gives notice that the anti-dumping measure ... will shortly expire," the EU's executive arm said in the European Union's daily official journal.

"No request for a review was lodged," for the punitive taxes to be re-imposed after they expire on March 31, the official journal noted.

The penalty taxes were first applied more than three years ago in retaliation against Asian footwear being sold in Europe at below production cost.

The anti-dumping measures in the EU -- home to half a billion people -- have carried import duties of 16.5 percent levied on Chinese shoes with leather uppers and 10 percent on the same kind of shoes from Vietnam.

The measures were first introduced in retaliation for Asian footwear being sold in Europe at below production cost.

The taxes were extended for 15 months in late 2009.

Last year China lodged a complaint against the European Union at the World Trade Organisation over the issue.

There has also been a European faultline running between its economically liberal north, hostile in principle to anti-dumping measures, and the more protectionist south, sympathetic to fears that cheap Chinese imports could undermine EU producers.

Bigger manufacturers that make their shoes in Asia such as Diesel, Adidas and Puma are also fighting against the renewal of the shoe tariffs.

The European Commission stressed, in the official organ, that it considers it "appropriate to monitor for one year the evolution of the imports of footwear with uppers of leather" originating from China and Vietnam "with a view to facilitate swift, appropriate action should the situation so require."

The European Footwear Alliance, which represent manufacturers, welcomed the end of the anti-dumping taxes in a statement while adding that it too would remain "vigilant" to see how imports progress.

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