The Common Market of the South (Mercosur) and Cuba on Friday signed an agreement on eliminating tariffs and boosting complementary trade, on the sidelines of the 30th Mercosur Summit in Cordoba, Argentina.

The group deal, known as the Economic Complementation Accord, is an integration of the four agreements that the Mercosur members already have with Cuba, and was signed by presidents of Argentina, Brazil, Paraguay and Uruguay on behalf of Mercosur, and Cuban President Fidel Castro for his nation.

Cuba-Mercosur trade reached 405 million U.S. dollars in 2005, with Mercosur member states registering a surplus of 323 million dollars.

Cuban authorities said the deal would help offset the consequences of the 40-year-old blockade imposed on Cuba by the United States.

Analysts say the agreement is of more political than economic significance, showing that Mercosur rejects the U.S. way of treating the Caribbean island nation.

Source: Xinhua