Brazil proposes relaxing Mercosur's common external tariff

Brazilian Foreign Minister Jose Serra said Monday he plans to propose that South America's Mercosur trade bloc relax its common external tariff.

The common tariff applied by all the members of the Southern Common Market -- Brazil, Argentina, Paraguay, Uruguay and Venezuela -- "excessively" limits Brazil's ability to enter into new trade agreements with countries outside the bloc, Serra said.

Speaking at an official event in southeast Sao Paulo state, Serra said it was time to update Mercosur norms.

"We are excessively tied down by Mercosur's customs unification clause," said Serra, who wants Brazil to be able to independently and unilaterally negotiate trade agreements, which the regulations of the regional trade bloc bans.

"In every negotiation, Brazil had to take Mercosur with it," complained Serra, saying it "held Brazil back."

When countries form trade blocs, they agree to a common external tariff on imports -- in Mercosur's case, from 0 percent to 20 percent, depending on the product -- to prioritize trade between members and discourage re-exporting.

According to Serra, Brazil has signed only three free-trade agreements as part of Mercosur, with Israel, Egypt and Palestine.

Mercosur signed a fourth agreement with Lebanon in 2014.

The Brazilian top diplomat also criticized the protectionist policies of developed countries.

"The world's most protectionist countries are the developed countries," said Serra, adding "Brazil's tariffs on agricultural exports are child's play compared to those of countries such as Norway and the United States."

Created in 1991, Mercosur is undergoing a period of adjustment as recent political events and elections in its two biggest economies, Brazil and Argentina, have seen progressive left-leaning governments give way to conservative pro-business administrations.

On Monday, Paraguay's Foreign Minister Eladio Loizaga said he and his Mercosur counterparts will likely meet in the first week of July to discuss the economic and political crisis gripping Venezuela.

In a statement issued by the ministry in Paraguay's capital Asuncion, the minister said the severity of the crisis demanded a high-level meeting.

"It has to be a ministerial meeting, it cannot be a meeting of deputy ministers, because it has to deal with a sensitive issue," said Loizaga.

Paraguay called the meeting, saying it was concerned by the fact that Venezuela is scheduled to take over the six-month rotating presidency of the trade bloc from Uruguay next month. Endi