| CARICOM
and MERCOSUR met at Ministerial level in Port-of-Spain,
Trinidad and Tobago on 24-25 February 2005 to continue
discussions on the possibilities for negotiating a Free
Trade Agreement to enhance trade and investment linkages
between both Regions. CARICOM Ministerial Spokesperson on Bilateral Trade
Negotiations, Honourable Kenneth Valley, Minister
of Trade and Industry of Trinidad and Tobago in welcoming
the MERCOSUR delegation, led by Honourable Leila Rachid
de Cowles, Minister of Foreign Affairs of Paraguay,
expressed the hope that CARICOM and MERCOSUR would
move quickly to conclude a Free Trade Agreement by
the end of 2005. Minister Rachid de Cowles confirmed
the interest of MERCOSUR in negotiating a Free Trade
Agreement (FTA) with CARICOM which would take account
of the differences in levels of development of the
countries of both regions. She looked forward to the
early commencement of negotiations. Both Ministers
highlighted the benefits of enhanced trade relations
to the private sector through new trade and investment
opportunities.
The
technical discussions which followed were co-chaired
by Ambassador Richard Bernal, Director General of
the Caribbean Regional Negotiating Machinery (CRNM)
on behalf of CARICOM and Ambassador Rubén Ramírez
Lezcano, Common Market Group Co-ordinator of Paraguay
on behalf of MERCOSUR. MERCOSUR Officials outlined
the region’s vision for the scope and content
of a possible free trade agreement with CARICOM which
would place emphasis on trade in goods, services and
investment. The agreement would enshrine the principle
of special and differential treatment and would include
asymmetrical treatment to deal with sensitivities
of all Parties. In addition MERCOSUR would be ready
to assist with technical co-operation to CARICOM countries.
CARICOM welcomed the thrust of MERCOSUR’s
approach and highlighted the importance of maintaining
the integrity of its regional integration process
in any enhanced trade arrangements with MERCOSUR.
While acknowledging the importance of trade in goods,
the CARICOM co-chair highlighted the Region’s
interest in developing a platform for increased trade
in services, in particular tourism services, and the
promotion of investment between CARICOM and MERCOSUR.
Both
sides engaged in an exchange of information related
to the status of implementation of their respective
integration processes, bilateral trade agreements
concluded by both regions as well as rules applied
to intra-regional trade. They also discussed their
respective tariff structures and agreed to exchange
trade data. Both sides recognised the need for more
indepth exchanges on some of the issues which emerged
during the Meeting and agreed to meet again promptly.
A decision on the negotiation of a Free Trade Agreement
with MERCOSUR will be taken by CARICOM Trade Ministers
at their next meeting scheduled for May 2005.
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