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China, the EU and Latin America : current issues and future cooperation
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TradingwithGiants:IsTradePolicywiththeEUandChinaBeneficialtoMERCOSUR? 91 distortionsoccurasaconsequenceofEuropeanagriculturalpolicies .Therefore theproblemisnotonlymarketaccess butalsosubsidiesandinternalsupport whichtendtodistortworldmarkets sincetheEUoperatesasonebigcountry andMERCOSURisapricetaker. 犜犪犫犾犲2 犕犈犚犆犗犛犝犚狊犘狅狊犻狋犻狅狀犪狊犪狀犈狓狆狅狉狋犲狉 Product Worldtradeposition Productionposition Food Bioenergy Bovinemeat Flourand soyapellets Soyaoil Sugar Coffee Orangejuice Sunfloweroil Bioethanol 1st 1st 54%ofworldexports 1st 74%ofworldexports 33%ofworldexports 19%ofworldexports 1st 65%ofworldexports 19%ofworldexports 1st 1st 20%ofworldstocks 1st 51% ofworldproduction and41%ofworldsownarea 1st and 1stin soyaflour ), 34%ofworldproduction 1stcoffeeandsugar 1st 4th 14%ofworldproduction 2nd 42%ofworldproduction Source:Garbarinoetal.2008:48. Althoughtheagriculturalissueisakeyproblem there maybeother difficultiesbeforeagreementisreached.Thesemayinclude: NewcountriesenteringtheEU:countriesthataremainlyagricultural producersand MERCOSURscompetitorsforEUfinancialresources which havefewculturallinkswiththeregion. Issuesbeyondthescopeoftariffcutsshoweddivergences suchas governmentpurchasing geographicaldenominationandintellectualproperty. Furthermore theexistenceoftariff peaks andtariffcontingents export subsidiesandothermeasuresofsectoralprotectionmadenegotiationsdifficult mainlybecausetheyarenotusedbyMERCOSUR andsoinanyofferoftariff reliefitsmarketswillremainfullyopen establishingaschemecharacterisedby an asymmetriclackofprotection The singleundertaking negotiation modality:onedissentingissue alonehamperstheprogressofthewholeagreement. ThedemiseofFTAA lessprospectofprogressonaMERCOSURUS agreementandthefailureoftheDohaRound allofwhichmightreduceinterest intheEUMERCOSURagreement. AccordingtoCienfuegos 2008 ), adebateisgoingonconcerningtheEUs