Latin America's Mercosur trade bloc resumed talks on a free trade deal with the European Union on Tuesday, warning that a deal was unlikely if Europe did not offer improved market access for farm goods.
"Mercosur is expecting a significant improvement in market access for agricultural products. If not it will have to find alternative paths," said Argentine Trade Secretary Martin Redrado.
Trade talks between Mercosur - which groups Brazil, Argentina, Uruguay and Paraguay - and the European Union were suspended in Brussels three weeks ago after the Latin Americans demanded more opportunities to sell their farm products.
The two sides began their discussions in Brasilia at the Foreign Ministry on Tuesday. Talks are to continue through the week.
The two groups had hoped to conclude negotiations by October, before changes in the European Commission. If there is no improved agricultural offer from the EU, the best option may be to suspend the talks until November and deal with a new European Commission, said Redrado.
Later on Tuesday, Redrado said the EU had made a "slightly" better offer on imports of beef from Mercosur countries. He gave no details.
Brazilian trade negotiator Regis Arslanian said, "The offer represents an improvement, but it needs to be studied."
In Brussels, Mercosur negotiators were disappointed by an EU offer to phase in market access for farm goods over 10 years.
"There has to be a substantial improvement in the offer and if not, there is no way of advancing," said Redrado.
Redrado said he hoped an agreement in World Trade Organisation talks last week to end billions of dollars in rich country farm export subsidies would spur the EU to improve its offer.
Mercosur has long complained that rich countries break trade rules and subsidise their farm products, causing distortions in markets.
Two WTO rulings, against US cotton and European sugar subsidies, have bolstered the group's clout to demand greater access for farm goods.
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