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EU and Mercosur begin trade talks
The European Union and the South American trade bloc, Mercosur, have opened formal talks on creating a free trade zone before 2003.
The meeting in Brussels brought together EU representatives and negotiators from Mercosur's members, Brazil, Argentina, Paraguay and Uruguay, as well as Chile.
In a joint statement, the two sides said economic growth in the two regions and the priority given by the EU to its relations with Mercosur had created a favourable climate for negotiations.
However, correspondents say there are numerous issues to be resolved, particularly over agricultural products.
From the newsroom of the BBC World Service
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