Progress was made toward an overall deal between the EU and Latin America's Mercosur trade bloc, but the talks fell short of a clear-cut advance toward a full-fledged accord, still bitterly opposed by European farmers who are fearful of losing lucrative subsidies and losing out to cheaper imports.

Agreements between the 27-nation EU and Central American states' group and the EU and individual countries in South America gave the summit its positive coloring, which was welcomed by both sides.

The Central American trade agreement, the first ever deal between the two regions, would benefit Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.

Officials said the deal followed intense talks -- an indication that negotiations on the larger deal with Latin America would likely be more complex and demanding on both sides' positions.

A statement said the association agreement would result in ambitiously comprehensive and balanced trade relations between the two sides.

The negotiations are to be formally concluded by EU and Central American leaders at their summit meeting on Wednesday.

The deal followed agreement on Monday between the EU and the four-nation Mercosur to resume talks stalled since 2004 to try and reach a larger free trade agreement. Although a fresh round could start in July, opposition to any deal with Mercosur remains fierce.

This became apparent as the EU Agriculture Council met in Brussels at the same time as the Madrid summit went under way. French Agriculture Minister Bruno Le Maire, a leading voice against further concessions to Mercosur, declared to the media, "France is opposed to the re-launch of the negotiations between the EU and Mercosur.

"I don't see why agriculture always has to be the bargaining chip in Europe's trade negotiations, especially when a certain number of South American countries, notably Argentina, are putting new protectionist tariffs on food imports," he said.

He said removing EU import tariffs on agricultural products from Mercosur countries would lead to a 70 percent rise in imports of beef, and 25 percent increase in poultry imports. Supporters of a Mercosur argue that increased imports would be more than offset by EU exports and business deals with Latin America.

France was joined in the opposition by other countries that are beneficiaries of EU farm subsidies. Italian Agriculture Minister Giancarlo Galan echoed the French position that Mercosur talks presented a great risk to European farmers.

Ireland said it was worried what a deal with beef-producing Latin America could do to its beef industry, responsible for more than 30 percent of Ireland's total agricultural output.

Germany muted its opposition but Britain, the Czech Republic, Denmark, the Netherlands and Sweden indicated they would not object to resuming talks with Mercosur.

However, farmers' opposition to a Mercosur deal is gaining momentum across. Spanish agriculture leaders have joined the fray, warning a Mercosur association agreement could destroy farm businesses in the country which is in the forefront of reopening the talks.

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