Mercosur Presidents Agree to Expand, Strengthen Trade Bloc

<a href=www.voanews.com>VOA News 19 Jun 2003, 01:33 UTC

The leaders of South America's Mercosur trade bloc have agreed to strengthen and expand their economic and political ties to create a common market by 2006.

The presidents of Argentina, Brazil, Paraguay, and Uruguay made the pledge Wednesday as they wrapped up their bi-annual summit in Asuncion.

Their counterparts from associate member nations Bolivia and Chile also took part in the discussions. Venezuelan President Hugo Chavez attended the talks as a special guest.

The South American leaders want to boost Mercosur to counter what they say is U.S. dominance in talks on a proposed Free Trade Area of the Americas. Work on the hemispheric trade zone is expected to be completed by 2005.

The planned zone is a top U.S. policy priority for Latin America and would stretch from Alaska to Argentina. Thirty four nations, excluding Cuba, would be part of the zone.

The Mercosur leaders also agreed to intensify efforts to merge with the Andean Community - which comprises Bolivia, Colombia, Ecuador, Peru, and Venezuela. Peru and Venezuela have expressed an interest in Mercosur.