Peru Signs Trade Accord With South America's Mercosur

<clips>

Aug. 25 (Bloomberg) -- Peru signed an accord with the Mercosur trade bloc that may give the group more clout and increase trade among South American countries.

Representatives of Peru and of Mercosur's four members -- Brazil, Argentina, Paraguay and Uruguay -- today signed an accord in Lima. Peru joins Bolivia and Chile in holding a partnership accord with Mercosur already.

Alfredo Ferrero, Peru's Foreign Trade Vice Minister, said that Peru and Mercosur will spend 60 days identifying products on which custom duties may be eliminated or reduced next year. Peru President Alejandro Toledo said the accord may prompt other Andean nations to join Mercosur.

Brazil President Luiz Inacio Lula da Silva, who was in Lima for the signing, has said he wants to bolster South America's position in talks with the United States for a free-trade area of the Americas. Brazil has voiced concerns that the U.S. may not lower trade barriers on some goods.

<http://quote.bloomberg.com/apps/news?pid=10000086&sid=ajZShLQO6EQI&refer=latin_america>