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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- The European Union and Mercosur, comprising Brazil, Argentina, Paraguay, and Uruguay, are actively pursuing the conclusion of their ongoing free trade negotiations.
- During a Mercosur summit held in Rio de Janeiro, Brazil's President Luiz Inácio Lula da Silva expressed optimism about reaching an agreement in the EU-Mercosur free trade negotiations.
- German Chancellor Olaf Scholz, along with Lula, advocated for a swift conclusion of the agreement during German-Brazilian government consultations in Berlin.
- Argentina, led by future President Javier Milei, has shown more openness towards the planned free trade agreement than its current government.
- The EU-Mercosur free trade negotiations, initially commencing in 1999, have been met with concerns surrounding environmental protection, particularly in France.
- French President Emmanuel Macron expressed concern that European industries would be subject to stricter environmental regulations, placing them at a disadvantage compared to South American competitors.
- The proposed free trade agreement, once finalized, would form one of the world's largest trading zones inclusive of more than 700 million inhabitants.
- Despite notable advancements, the negotiations on the EU-Mercosur free trade agreement have been stalled since 2019, causing controversy in both South America and Europe.
- International environmental organizations such as Greenpeace, welcome the ongoing halt in the signing of the EU-Mercosur free trade agreement, fearing its advantageous implications for climate and nature-damaging corporations.
- Mercosur and the EU hope to promptly reach a mutually beneficial agreement that effectively highlights the strategic nature of their relationship and its potential contribution to addressing global challenges.
Source: www.stern.de
