The political perception of the business-driven initiative and its inaugural Conference was impressive. The presidents from three Mercosur countries,Brazil, Paraguay and Uruguay participated in the opening session. President Menem, who phoned in sick, sent his foreign minister to replace him. Eight other ministers from Mercosur participated in the conference in the following days. The EU Commission was represented by Industry-Commissioner Martin Bangemann.

Political discussions and speaches focused on the building of a free trade area between the EU and Mercosur and the opening of the EU agricultural market.

President Cardoso and his two colleagues insisted on a liberalisation of this protectionist sector in the EU. Commissioner Bangemann supported their concerns and expressed his strong believe that the Commission would obtain the mandate from EU member states to start negotiations for a free trade zone until the EU/LA Summitt in June.

The business community resumes these concerns in the "political chapter" of the "Rio Declaration", regarding them as a basis for the realisation of most of their recommendations. The MEBF welcomes the intention of the German EU presidency "to use its best efforts to obtain a mandate for the European Commission as a first step for negotiating a free trade zone with Mercosur". MEBF also supports the rules and principles of the WTO and expresses the necessity of bilateral and regional agreements being in conformity with WTO rules.

Due to the numerous participation of top-level politicians, the Rio Conference has evoced a huge media echo in the member states of Mercosur, the EU, and other important international media.(CNN, BBC, etc.) The press covered the whole 3-day event with detailed reports about business and government meetings on their front pages and a full-length broadcast of the Opening Session on Brazilian National Television.

Centrepiece of the three-day business meeting were the recommendations of the Rio Declaration which businessmen had concluded in the meetings of the three Working Groups Market Access, Investment / Privatisation and Services, and which ask for quick consideration and implementation by the administrations of the two blocs.

In the Rio Declaration, the Working Group "Market Access" particularly pledges for facilitation in the fields of customs procedures and trade. Other priority issues are rules of origin, intellectual property rights and trade defense instruments. A closer co-operation in standards and certifications and the signing of Mutual Recognition Agreements is emphasised. The group has identified certain key sectors which should elaborate specific recommendations within the follow-up work to the Conference. (Automobile industries, chemicals, pharmaceuticals, medical devices, tires, telecommunications, confectionary, agribusiness, forest products, pulp and paper, capital goods and ceramics.

The Working Group Investment/Privatisation has identified recommendations in the fields of investment conditions, infrastructure, participation in the privatisation process, company co-operation, technical and educational co-operation and free movement of personnel. The discussions on government procurement will be continued.

In the field of Services, the Working Group presented proposals on business facilitation in the field of Information Society and Electronic Commerce. MEBF has initially identified the following key sectors that constitute a priority for analysis: telecommunication, energy, financial services, transportation and tourism.