Mexican initiative aims to break impasse on Union accord

Date: 28/11/1996

By Elizabeth Wise

MEXICO has moved to meet the European Commission halfway to try to end a dispute which has prevented the two sides from even beginning talks on a new, upgraded accord.

Now, say the Mexicans, the ball is in the Union's court.

Next week, EU member states are expected to respond to Mexico's offer to begin two-stage negotiations aimed at upgrading its current agreement with a new cooperation platform, and even-tually, a political and commercial accord.

The start of talks has been delayed for months because of differences over how and when to negotiate the political, economic and general cooperation aspects of a new agreement.

Mexico wanted to negotiate on the three areas simultaneously, putting everything on the table at once.

Several member states backed the plan, but the European Commission and those Union governments more wary of opening EU markets to Mexican goods and produce called for a two-phase negotiation, sealing political and other cooperation chapters first and postponing trade liberalisation.

Faced with an impasse, the Mexican government last week came up with an offer to discuss scientific, technical and cultural cooperation first, with the aim of drawing up a memorandum of understanding which would outline the procedure for later political and trade negotiations.

Such negotiations would start within 30 days of the memorandum being signed.

“We are prepared to negotiate as soon as the Union is ready,” insists Ambassador Manuel Armendáriz Etchegaray, Mexico's envoy to the Union.

Armendáriz presented the proposal to the Commission early last week and it had its first airing in front of EU officials a few days later. Member state governments are to examine it more closely next Thursday (5 December).

If they do not accept the compromise offer, Mexican officials say their government will revert to its earlier insistence on all-inclusive negotiations up front. “We believe we have come a long way to try to meet the Commission position,” said the ambassador. “We hope on the other side there is a similar move.”

A flood of words about free trade talks with both Mexico and South Africa at the beginning of this year turned into a drought when EU governments put the brakes on both initiatives.

They did so because of fears about what they would be required to include in a free trade deal under new World Trade Organisation rules, and what the EU would be expected to give other trading partners as a result.

Spain, Italy, Germany and the UK have led the way in arguing in favour of boosting commercial links with Mexico, while many other member states would prefer to put off any talk of free trade.

Armendáriz will be watching the EU's reaction to his latest offer closely.

He hopes that the voices of those in the Union who support freer trade with Mexico can still make themselves heard above the clamour of the many profound and divisive debates going on within the Union over whether its

15 member nations should forge a common trade policy, whether trade flows between Europe and North America should be increased even more in the interest of transatlantic ties, and whether the EU - in its drive to give credibility to the WTO - should push for further global trade liberalisation.

“It is a good test of political will in the Union,” says Armendáriz.

If advocates of more open trade with his country win the day, says the ambassador, Mexico could be the testing ground for a host of new policies forged at the Intergovernmental Conference and the WTO ministerial meeting in Singapore next month.

In his state of the nation address in September, Mexican President Ernesto Zedillo stressed the importance of ties with Europe as part of his country's plan to diversify and intensify its international relations.

“With the EU we have been developing a relationship based on a permanent political dialogue, in order to increase and balance commercial exchanges, to promote more European investment flows to Mexico and to ensure better terms of cooperation,” he said.