EU, Andean nations to hold negotiations on free-trade deal

The EU and four Andean Community nations agreed on Friday to hold "intensive" talks to try resolving disagreements over whether to launch free trade talks, Peru's president said.

President Alejandro Toledo told reporters that he hoped the talks, which EU officials said could stretch into July, could lead to a free trade pact between the two blocs by 2008.

"There are always barriers on the way to integration but this cannot hinder the ultimate goal of integration," he said. "Different opinions are normal."

In a final declaration adopted late on Friday, European, Latin American and Caribbean leaders welcomed the decision and noted that it would lead to the negotiation of an "Associated Agreement" that would include political dialogue, cooperation programs and a trade agreement.

The EU and the Andean Community agreed to hold "all necessary meetings" before June 20 to clarify and define the bases of the negotiation and to allow for the full and beneficial participation of all parties, the declaration said.

EU leaders were to meet with counterparts from Peru, Ecuador, Colombia and Bolivia yesterday, Austrian Chancellor Wolfgang Schuessel said.

Venezuela, meanwhile, said it wants to leave the Andean Community to protest moves by fellow members to sign free trade deals with the US.