EU and Mercosur Negotiators Race to Finalize Free Trade Agreement
The Mercosur trade bloc will meet in Uruguay this Thursday, with the possibility that the group will use the occasion to announce a long-delayed trade agreement with the European Union, following last-minute negotiations to approve it.
The trade deal, supported by most South American countries and driven by Germany and Spain, has faced strong opposition from France, which fears that agricultural imports to Europe could harm its powerful farming sector.
Negotiators from all parties met in Brazil last week, according to high-level diplomatic and government sources, and it is expected that delegations will travel to Montevideo if an agreement is reached during the ongoing virtual talks this week.
European Commission Intervention
European Commission President Ursula von der Leyen could even travel to the summit in the Uruguayan capital on December 5-6, two European sources said, although most cautioned that it was unlikely that anything would be signed. One source noted that the EU chief had booked a plane ticket just in case.
“The last round of negotiations ended with significant progress,” said Mauricio Lyrio, Secretary of Economic Affairs at Brazil’s Ministry of Foreign Affairs, on Monday. “We are hopeful. The pending issues are being presented to the leaders for finalization.
Final Agreement
France has been trying to rally other EU members to form a minority bloc against the deal. Poland recently joined the opposition, but France needs at least three countries representing more than 35% of the EU’s population to block the agreement.
Meanwhile, other EU countries, including Germany and Spain, are leading a coalition of 11 member states in favor of the deal. They seek new trade routes to reduce reliance on China and shield members from the trade tariffs expected under U.S. President-elect Donald Trump.
An agreement between the EU and Mercosur was initially reached in 2019, but it was never ratified due to EU demands for commitments on deforestation and climate change. Some officials fear a similar outcome this time, even if a final text is agreed upon.
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