World trade - EU and Mercosur continue to fine-tune free trade agreement
The European Union and the South American economic alliance Mercosur are continuing to press for a swift conclusion to the negotiations on the free trade agreement between the two regions.
"The EU and Mercosur are engaged in constructive talks to resolve the outstanding issues under the agreement," they said in a joint statement. "Considerable progress has been made in recent months. Negotiations will continue with the aim of finalizing the process and reaching an agreement that is beneficial to both regions and meets the demands and aspirations of their respective societies."
The heads of state of Brazil, Argentina, Paraguay and Uruguay met in the Brazilian metropolis on Thursday for a Mercosur summit. Brazil's President Luiz Inácio Lula da Silva had originally wanted to announce a breakthrough in the negotiations at the meeting. At the German-Brazilian government consultations in Berlin on Monday, Lula, together with German Chancellor Olaf Scholz, had insisted on a rapid conclusion of the agreement.
However, this failed mainly due to resistance from France and Argentina. At least in Buenos Aires, the government will change on Sunday: the future President Javier Milei, an ultra-liberal, is much more open to the planned free trade agreement.
Lula is optimistic
Talks between the EU and Mercosur on the free trade zone have been ongoing for 23 years. An agreement in principle reached in 2019 will not be implemented due to ongoing concerns, such as rainforest protection. French President Emmanuel Macron recently complained that industrial companies and farmers in Europe would be subject to strict environmental regulations in future and would have to compete with competitors in South America who do not have to meet such requirements as a result of the free trade agreement.
"We know that not everything always works the way we would like it to. But we are moving forward. I am always very optimistic. My motto is: never give up," said Lula at the summit in Rio. "There is nothing we cannot achieve. We have to keep trying to reach an agreement with the European Union".
Agreement has been on hold since 2019
Environmental organizations, on the other hand, welcomed the fact that the free trade agreement did not materialize for the time being. "The good news for the planet is that this toxic treaty has not yet been signed," said Greenpeace trade expert Lis Cunha. "The bad news is that some countries, including the German government, still want to push ahead with an outdated agreement that mainly benefits climate and nature-damaging corporations."
The agreement would create one of the world's largest free trade zones with more than 700 million inhabitants. Its main aim is to reduce tariffs and thus boost trade. However, the negotiated agreement has been on hold since 2019. The agreement is controversial in both South America and Europe. Some countries want to protect their markets, while others fear that labor or environmental standards will be weakened.
"Based on the progress achieved so far in the negotiations, both parties hope to quickly reach an agreement that reflects the strategic nature of the relationship between the two parties and the crucial contribution they can make to tackling global challenges in areas such as sustainable development, reducing inequality and multilateralism," the joint EU-Mercosur statement said.
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Source: www.stern.de
