Spain mediates to unblock free trade agreement with Mercosur countries

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A little over a year ago, as Spain began preparing for the rotating presidency of the European Council, Pedro Sánchez met with Charles Michel, president of the European Council. He said that he wanted to take advantage of the opportunity to organize a summit between the European Union and Latin American and Caribbean countries gathered in the organization. ÇELAK. Eight long years had passed without a meeting at the top level of both regions, partly due to disagreements between the countries of the Americas. But now the urgency is even greater: Europe wants to ensure that “European compatible” regions like this are close by and prevent them from falling into the hands of China and Russia. To guarantee, among other things, supply and value chains. He told Michel that he wanted the meeting to be held in Brussels instead of a Spanish city to consolidate his Europeanness. According to government sources, Michel agreed.

The summit finally kicks off this Monday and Tuesday, 17 and 18 July. Moncloa presents this as an almost personal commitment from the president. However there are many open fringes. First, countries with dubious or zero democratic identities participate, such as Cuba, Nicaragua or Venezuela. The European Parliament wants the participants from these three countries to be condemned at the meeting for human rights violations. Second, because the economic agenda (most relevant to the meeting) did not develop as expected when the chairman visualized the meeting.

The EU free trade agreement with Mercosur (Brazil, Argentina, Paraguay and Uruguay) is a good example of this. If finally approved (under construction for 20 years), it will allow duty-free exchange of meat, fruit and vegetables, minerals and other commodities.

When Luiz Inácio Lula da Silva became the new president of Brazil after overthrowing Jair Bolsonaro, Brussels uncorked the champagne. The opportunity to ratify an agreement that was already signed but blocked due to the far-right leader’s anti-Amazon policies has reopened.

But then bad news came from Paris. France began to object, again because of environmental problems, but also because of the different conditions that European farmers and cattle ranchers had to meet compared to the laxity of Latin America: pesticide use, food safety, animal treatment, etc. Emmanuel Macron, for all intents and purposes, blocked ratification until an addendum was agreed upon (side letter) with new requirements.

one of them Sanctions to be applied in case of violation of environmental conditions acceptance. Moncloa sources say that Spain is against this sanctions plan. Lula also said: You can’t sign an agreement that implies trust and focuses on penalties.

However, France remains challenging in this regard, as French trade policy manager Olivier Becht confirms to this paper: “It is unthinkable for us to bring beef or products raised on deforested lands in the Amazon.” SPAIN, French Delegate for Foreign Trade, Attractiveness and Abroad, from the Prensa Ibérica group. “We need to import products with pesticides that we can’t use here or the EU continues to impose restrictions on European producers and at the same time Allows the import of products made through social dumpingsanitary and financial ahead of those here”.

The other big hurdle is so-called “mirror provisions”: that manufacturers from the aforementioned Latin American countries are subject to the same rules as in the EU. Paris does not give up there either.

Meanwhile, Spain is trying to mediate. Government sources say will not hinder progress for agreement on certain details. The tree does not block the view of the forest: This is an agreement that has not been in place for twenty years, and the obstacle needs to be removed. Madrid is making significant efforts with active diplomacy to talk to both Mercosur and the EU and related countries. Lula, who somehow leads the four-nation group, recently met with Commission chairman Úrsula von der Leyen, who presented a proposal with a strong Spanish stamp. Now Mercosur must answer whether it wishes to sign it. side letter and with that, unblock the ratification of the treaty with the different States involved. Brazilian sources will respond “within a few weeks”, EFE news agency reported.

300,000 million investment plan

The corridors of official buildings in Brussels will be shaken in the next few days with bilateral talks, and those who are undoubtedly interested in telegraph, should be ready by the end of the year. In other words, the Council is chaired by Spain. It may be delayed, in part, as Argentina’s presidential election on October 22, 2023, approaches.

One of the most important milestones of the summit in the economic field will be the business forum where the investment projects of the so-called countries will be discussed. Global Gateway, A European plan to mobilize up to 300,000m euros in investments promoting green development and digitalization in Africa and Latin America. It’s a kind of response to the New Silk Road, where China seeks to win the favor of investment-driven “global south” governments.

Representatives of various NGOs this Thursday questioned the effectiveness of this investment financing scheme in putting the “private sector” at the center of the proposal. Major Spanish companies with a strong foothold in Latin America and the Caribbean will take part in this forum: Telefónica, Iberdrola, Acciona, Balearia, Santander, BBVA, Hispasat, among others, according to government sources.

Commonwealth of Latin American and Caribbean States

CELAC Antigua and Barbuda, Argentina, Bahamas, Barbados, Belize, Bolivia, Brazil, Colombia, Costa Rica, Cuba, Chile, Dominica, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama , Paraguay, Peru, Dominican Republic, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Saint Lucia, Suriname, Trinidad and Tobago, Uruguay and Venezuela.

Political tension for EU-Celac summit

The presence of Latin America’s less democratic countries has been a major point of friction, as has the possible assistance of Ukrainian President Volodymyr Zelensky, which has not been welcomed by some regional countries, which maintain close ties with Moscow.

With regard to Zelenski, Moncloa tried to show the parties that direct dialogue was necessary. The Ukrainian leader spoke to the possibility that direct access to negotiations with countries less aligned with NATO could be positive. And for these countries, knowing firsthand about the Kiev peace plan does not subtract, it only adds.

Cuban President Miguel Díaz-Canel confirmed his participation in the summit this Thursday. The Cuban government accused this Monday “lack of transparency” and “manipulative behavior” It is to the EU in the preparation of the summit, which, according to him, puts the success of the appointment at “serious risk”. Government sources say someone from Nicaragua and Venezuela will go, but it will likely be a foreign minister, not the chief executive.

The European Parliament this Thursday condemned the interference of Nicolás Maduro’s regime in Venezuela’s elections scheduled for 2024, after several opposition candidates were disqualified. European lawmakers demand that democracy and fundamental freedoms be respected in the summit’s final declaration. From Moncloa, it seems very unlikely, as, among other things, the declaration must be adopted verbatim by the signatory countries.

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