Mercosur Leaders Agree to Expand, Strengthen Trade Ties

<a href=www.voanews.com>VOA News, 19 Jun 2003, 10:07 UTC

The heads of the four main countries that make up South America's Mercosur trading bloc have agreed to expand economic and political ties in an effort 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. Reports indicate he would like to see Venezuela become a full member of the group.

The South American leaders want to strengthen 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.