Lima  - The European Union (EU) and the South American trade alliance Mercosur failed Saturday to breathe new life into negotiations for an Association Agreement between the two blocs.

The discussions were launched in 1999 but have stalled pending the results of the Doha Round of world trade talks.

Argentine President Cristina Fernandez de Kirchner - whose country currently holds the pro tempore presidency of Mercosur - met with Prime Minister Janez Jansa of Slovenia, which presides over the EU Council, and with European Commission President Jose Manuel Durao Barroso in Lima.

Mercosur and the EU timidly agreed to reactivate talks but set no deadlines.

In separate trade negotiations with other economic groupings in Latin America, the European Union did make more concrete progress. A 2009 deadline was set in talks between the EU and the Andean Community and between the EU and Central America.

Such progress was elusive however with Mercosur, which includes Brazil, Argentina, Paraguay and Uruguay. Venezuela's entry is pending ratification.

The EU and Mercosur stressed the need for an Association Agreement that is "ambitious and balanced" and vowed to pursue successful negotiations "as soon as the conditions allow."

They further expressed their commitment to the Doha Round of talks at the World Trade Organization (WTO) and agreed to boost political dialogue as a tool for mutual understanding.

Overcoming poverty, inequality and hunger, achieving economic development and preventing climate change were mentioned as common goals for the EU and Mercosur, alongside the promotion of sustainable and renewable sources of energy.

Talks between the two blocs started almost 10 years ago, at the first EU-Latin America and the Caribbean (EU-LAC) summit in Rio de Janeiro in 1999, and were supposed to have concluded by 2004. The fifth EU-LAC summit was held Friday in Lima.

However, simultaneous talks at the Doha Round - with obstacles like agricultural subsidies in developed nations and other countries' reluctance to open their markets for goods and services - have hampered the process. Brazil in particular plays a leading role among emerging economies at the Doha Round.

Despite the failure to make clear progress towards an Association Agreement, the EU is Mercosur's main external trade partner, and receives 24 per cent of Mercosur's exports that leave its own borders. The European bloc is also the main investor in Mercosur. (dpa)