In a recent statement, Brazilian President Luiz Inacio Lula da Silva expressed optimism for the finalization of a trade agreement between the European Union and the Mercosur bloc by the end of the year, despite facing resistance primarily from France. Speaking at a CNI-hosted event in Brasilia, Lula confidently stated, "We will get it done," addressing the opposition from France. The negotiations are being conducted with European Commission President Ursula von der Leyen, with Lula affirming, "Von der Leyen has the mandate to make this agreement, and I intend to sign it this year."
The Mercosur bloc, comprising Brazil, Argentina, Uruguay, Paraguay, and Bolivia, represents a significant market for EU manufacturing exporters while sparking concerns among European farmers about increased competition, particularly in France. The prospective EU-Mercosur deal, under discussion for approximately 25 years and announced in 2019, has yet to be formally ratified, stalled by EU demands for environmental and climate commitments.
European negotiators have initiated a new round of discussions in Brazil, preceding a forthcoming Mercosur summit in Montevideo, Uruguay. Sources indicate a mutual "goodwill" to reach an agreement. Despite opposition from France and Poland, other EU members like Germany and Spain are in favor of the deal. Additionally, Argentina has shown support for the agreement, with presidential spokesman Manuel Adorni affirming Argentina's endorsement of trade agreements that benefit its citizens.
Recent discussions between Lula, Argentine President Javier Milei, and French President Emmanuel Macron in South America highlighted ongoing concerns, with Macron voicing France's apprehensions regarding agricultural imports that fail to meet European standards.
Source: Reuters