Chaire Mercosur SCIENCES PO

1 Chaire MercosurSCIENCES POGroupe de suivi des n gociations Union europ enne-MercosurGrupo de acompanhamento das negocia es Uni o Europ ia-MercosulGrupo de seguimiento de las negociaciones Uni n Europea-MercosurWorking group on European Union- Mercosur negotiationsTrade liberalisation in an EC- Mercosur Free Trade Agreement Experts Workshop Briefing NotesSciences Po / Working group on EU- Mercosur negotiations / Experts Workshop Briefing Notes / Rio de Janeiro 20/06/2000_____1 List of Experts and Paperspresented at the Experts Workshop, Paris, May 12th and 13th 2000 Strategic issues of an EU- Mercosur Free Trade AreaAlfredo Vallad o Professor Chaire Mercosur - SCIENCES Po (France)Euro- Mercosur relations after SeattleVera Thorstensen - Economic advisor to the Brazilian mission in Geneva (Brazil)WTO framework : the constraints of multilateralism on regionalismRobert Devlin Inter-American Development BankThe ALCA process : lessons for an EU- Mercosur FTAP atrick Messerlin - Groupe d'Economie Mondiale - SCIENCES Po (France)The costs of European protectionismSheila Page - Overseas Development Institute (United Kingdom)The existing EU trade agreements: what to learn for MercosurRamon Torrent - Universid d de Barcelona (Spain)The institutional and political framework of the AgreementThe overall impact of an EU- Mercosur Free Trade AreaRoberto Bouzas Facultad Latino Americana de Ciencias Sociales (Argentina)Trade flows and protection structure.

2 The magnitude of the problemPaolo Giordano Groupe d'Economie Mondiale et Chaire Mercosur - SCIENCES Po (France)Economic effects of an EU- Mercosur Free Trade Agreement : a CGE Model da Motta Veiga - Funda o Centro de Estudos do Com rcio Exterior (Brazil)The political economy of Mercosur and trade negotiations with the EUMaria Jo o Seabra- Instituto de Estudos Estrat gicos e Internacionais (Portugal)For and against an EU- Mercosur FTA: the interests in the EUFelix Pe a Consejo Argentino de Relaciones Exteriores (Argentina)For and against an EU- Mercosur FTA: the interests in the MercosurKey negotiating issuesAntoni Estevadeordal - Interamerican Development BankMarket accessRoberto Lavagna - Universidad de Buenos Aires (Argentina)Foreign Direct InvestmentJos Tavares de Araujo Jr Organisation of American StatesCompetition policyLia Valls Pereira Funda o Getulio Vargas (Brazil)Macroeconomic and trade policy coordination in the MercosurKlaus Bodemer Institut f r Iberoamerika-Kunde (Germany)Dispute settlementClaudio Dordi Istituto di Diritto Comparato - Universit Bocconi (Italy)Rules of originJos Manuel Salazar Organization of American StatesLabor standards Sectoral perspectivesMark Warner Organisation of Economic Co-operation and DevelopmentLiberalising trade in services.

3 Negotiating strategies and pro-competitive principlesAlberto Brugnoli Istituto di Studi Latino-Americani - Universita Bocconi (Italy)Trade and foreign direct investment in the manufacturing sectorMarcel Vaillant Universid d de la Republica (Uruguay)Trade specialisation and trade policy in agriculture in bilateral trade between the EU and Luis Rhi-Sausi Centro Studi di Politica Internazionale (Italy)The internationalisation strategies of European agribusinessMarcos Jank Universidad de S o Paulo (Brazil)Market access and domestic policies regulations in agricultureCatherine Laurent Institut National de la Recherche Agronomique (France)Multifunctionnality in agricultureSciences Po / Working group on EU- Mercosur negotiations / Experts Workshop Briefing Notes / Rio de Janeiro 20/06 3EU- Mercosur after Seattle : A race with the Free Trade Area of the AmericasAlfredo Vallad 4 WTO - framework : the constraints of multilateralism on regionalismVera 6 The Free Trade Area of the Americas and Mercosur -European Union Free Trade Processes: Can They Learn SomethingFrom Each Other?

4 Robert p. 8 The costs of European protectionismPatrick .p. 11 The existing EU trade agreements: what to learn for MercosurSheila p. 13 The institutional and political framework of the AgreementRamon Torrent ..p. 15 Trade flows and protection structure : the magnitude of the problemRoberto Bouzas and Gustavo 17 Economic effects of a Mercosur -European Communities Free Trade Agreement: A Computable General Equilibrium ModelanalysisPaolo Giordano and Masakazu Watanuki .. p. 22 The political economy of Mercosur and trade negotiations with the developed countries ;Pedro da Motta 25 European interest on an EU- Mercosur FTAM aria Jo o p. 29 Los intereses del Mercosur en sus negociaciones con la Union EuropeaFelix Pe 31 Issues in market access negociationsAntoni Estevadeordal and Ekaterina p.

5 33 Inversi n extranjera directaRoberto 35 Competition policy and the EU- Mercosur Trade NegotiationsJos Tavares de Araujo 38 Dispute settlement in a future EU- Mercosur Free Trade AreaKlaus 40 Rules of origin in international trade : main elements for the EU- Mercosur trade negotiationsClaudio 43 Trade and foreign direct investment in the manufacturing sectorAlberto Brugnoli and Laura 46 Trade policy and specialisation in agricultural goods in the bilateral relationships between the EU and MercosurMarcel 48La multifonctionnalit de l'agriculture, le jeu des d finitionsCatherine 50 SCIENCES Po / Working group on EU- Mercosur negotiations / Experts Workshop Briefing Notes / Rio de Janeiro 20/06/2000_____3 ForewordThe negotiations between the European Union and the Mercosur on trade liberalization initiated in November 1999.

6 Thefuture of the political and economic relations and of cooperation between Europe and the Mercosur , which is one of theregions with the highest growth potential, will depend on the outcome of this dialogue. Therefore, the interests at stake areconsiderable. All the interests should be expressed in their diversity and be given full consideration in order to successfulconclude the trade negotiations and start a new era of enhanced political and economic relations between the two this view, the Mercosur Chair of the Institut d'Etudes Politiques de Paris ( SCIENCES -Po) set up the Working Group onEuropean Union- Mercosur Negotiations which constitutes a neutral interface between the official negotiators, the businesscommunity and the civil Working Group is a flexible structure of working contacts between the two regions, which intends to contribute to thepreparation and to the monitoring of the European Union- Mercosur inter-regional negotiations and to the discussion of thepositions of the two regional groups within the framework of the WTO.

7 It aims at creating a permanent support group, whichbenefits from an independent academic forum and associates a broad spectrum of actors interested in the negotiation: thepublic administration, the political representatives, the private sector, and the experts originating from the academia and theleading international initiative follows the seminar jointly organized with the University of S o Paulo (USP), held in Paris on May 1999 andtitled "The Political and Economic Stakes of the European Union- Mercosur Negotiations and the AgricultureDeadlock". The seminar brought together around eighty participants such as officials from the legislative and executivebranches of the States, negotiators and diplomats, top executives from the private sector and experts from the two proceedings of the seminar were the subject of the first Report of the Mercosur Chair that was widely circulated inEurope and in the Mercosur .

8 The Report has been presented as a contribution of the Civil Society to the Summit of Heads ofState and of Government, held in Rio de Janeiro in June coordination of the Working Group is ensured by an Expert of the Mercosur Chair. The core of the Working Group isabout thirty specialists from the different countries of the Mercosur and the European Union. Participants undertake tocontribute regularly on their own behalf, without representing any organization or institution. Confidentiality is Working Group will produce studies and intermediate reports all through the EU- Mercosur and the WTO negotiationprocesses. The Mercosur Chair will publish the interim documents such as the Technical studies and the Annual the year 2000, the activities of the Working Group are organized as it follows.

9 In the Workshop (Paris - May 12th and 13th,2000), the Working Group Experts presented and discussed their technical research. In the Seminar (Rio de Janeiro - June20th, 2000) the Experts discussed the results of their research with the representatives of the public and private sectors. Inthe Annual Meeting (Paris - December, 2000) the Experts, the representatives of the public and private sector and theofficials of the European Union and the Mercosur will discuss the main issues of the Annual publication presents the Briefing Notes that summarize the Technical research produced by the Experts of the WorkingGroup. These Briefing Notes have been presented in the Seminar of the Working Group on Eu- Mercosur Negotiations jointlyorganized with the Centro Brasileiro de Rela es Internacionais Giordano, Alfredo Vallad o, Marie-Fran oise DurandMercosur Chair - SCIENCES Po27, rue Saint-Guillaume - 75007 ParisTel : + : + : Po / Working group on EU- Mercosur negotiations / Experts Workshop Briefing Notes / Rio de Janeiro 20/06/2000_____4 Strategic issues of an EU- Mercosur Free Trade AreaEU- Mercosur after Seattle : A race with the Free Trade Area of the AmericasAlfredo Vallad oThe anti-globalization backlash in the streets of Seattle during the last World Trade Organization (WTO) ministerialmeeting left the whole trade liberalization processes without a compass for the future.

10 In the absence a new round of talks -and besides the basic Articles XXIV of Gatt and V of GATS - there is no kind of an universal reference for the negotiations ofthe new themes of international trade, like services, agriculture, investments, government procurement, competition policy, e-commerce or new issues .. Meantime, the melancholic mood in Geneva is strengthening the regional or inter-regionalprocesses (FTAA, APEC, Transatlantic Economic Partnership, ) as a second-best way to further tradeliberalization. Neither the emergent and the less developed countries, nor the economic sectors of the industrialized worldthat benefit from trade can wait for a hypothetical Millenium fact, trade negotiations today are constrained by two conflicting drives.