2023-09-22 13:15:00
COMMERCE INTERNATIONAL – A meeting was held on September 14 regarding the adoption of the free trade agreement between the European Union (EU) and the Mercosur countries (Brazil, Argentina, Uruguay and Paraguay). Following the exchange and despite diplomatic tensions, the Brazilian Minister of Foreign Affairs, Mauro Vieira, was positive about the holding of the negotiations, which had stopped under the presidency of Jair Bolsonaro.
Mercosur has been signed since 2019, but never ratified due to European concerns about Brazil’s ecological commitment. Discussions stalled under President Jair Bolsonaro, and the EU has been hopeful of resuming talks since Luiz Inacio Lula da Silva returned to power in January 2023.
Environmentalists versus globalists
People often try to make us believe that it is possible to be both at the same time. In any case, this is the challenge that the EU will have to face if it ratifies the free trade treaty with Latin America.
Mercosur aims to reduce customs duties to zero on 90% of goods traded between the treaty partners, which represents a market of no less than 720 million consumers. If this tempting prospect enjoys broad support in Germany, mainly from export-oriented industrial sectors, the possibility raises the hackles of environmental defenders and representatives of the agricultural sector, particularly French.
In July, during the EU-CELAC summit in Brussels, a number of MEPs took the opportunity to express their fears regarding the deforestation of the Amazon forest that could result from the increase in imports of agricultural products from Brazil. Not to mention the farmers who take a very dim view of the influx of cheap South American beef, because it is not subject to compliance with European production standards.
An additional protocol under tension
In March, the EU had already taken the lead by submitting an additional protocol to Mercosur, a text considering new requirements and constraints in terms of environmental preservation, and above all sanctions in the event of non-compliance with the latter, which was seen as a real affront by President Lula.
Mercosur member states must present a counterproposal to this protocol in the coming months. The aim of the September 14 meeting was to understand its outlines, and following the meeting, the Brazilian Minister of Foreign Affairs assured that Mercosur “met EU environmental requirements”. A European delegation is also going to Brasilia at this very moment, on September 21, in order to continue to ease diplomatic tensions.
The President of the European Commission, Ursula von der Leyen, has always actively supported the implementation of the agreement since the start of her presidency.
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