The presidents of the countries that make up Mercosur, Brazil, Argentina, Paraguay, Uruguay and Bolivia, a brand new member of this field, “to reach quickly” Delayed trade deal with the European Union. “Significant progress has been made in recent months. Negotiations continue Desiring to finalize the process and reach an agreement mutually beneficial At the close of the Rio de Janeiro summit, it was stated that this situation is valid for both regions and responds to the demands and desires of the relevant societies. “Based on the progress made so far,” the statement said, the parties “will reach a final understanding that corresponds to the strategic nature of the ties that bind both sides and the significant contribution they can offer to solving global challenges in areas such as sustainable development, inequality reduction and multilateralism.”
The expected announcement of the happy ending was left for the next episode. “It amazes me that they lack the flexibility to understand that we have a lot to grow, that we have a duty to industrialize. We need to be flexible so that they can get something of more added value from us. But they are not sensitive to that.” Luiz Inacio’s accusation Lula da Silva It had a definite buyer: its French counterpart, Emmanuel Macron. “I asked him to stop being so protective. Everyone is protectionist when it comes to the agricultural market. They do not take into account that we can participate in this sunny, extraordinary market,” said the Brazilian president.
He acknowledged that another aspect of the dispute was government procurement. “The issue of public procurement is very important for the development of a country. We could not open it as they wanted.” Brazil is reluctant to allow European companies to compete in Brazilian tenders. The outgoing Argentine Government shares this criterion, but it will certainly not be an obstacle to the far right. Javier Milei. With the change of powers in Argentina, negotiations to revive the agreement will be on the agenda of both blocs.
last minute efforts
“I talked to everyone, to Mercosur and to the EU countries. Like never before in history,” Lula said as he left the interim presidency of the area Brazil shares with its neighbors. He admitted that he had reached an agreement with the President of the European Commission. Ursula Von der Leyen, invitation to the summit Wonderful city We called on European negotiators to clarify their doubts. Despite the efforts of the Brazilian President and his Spanish counterpart, this was not possible. Pedro Sánchez.
“My motto is to never give up. Because there is nothing impossible for us to achieve, even the attempt to reach an agreement with the European Union. It has been going on for 23 years, but we must keep trying.” Lula said.
But the failure is not only attributed to Macron, but also To Argentinian Alberto Fernández, A person who refuses to ratify the agreement despite requests to the contrary from his country’s agricultural and industrial employers. For the Argentine Agro-Industrial Council (CAA), it is “key” for Mercosur to deepen its global economic integration “in the face of a changing and challenging international context.” However, Fernández noted that under current circumstances, the terms of the agreement further exacerbate the asymmetries between both blocs, especially in terms of food and manufacturing exports. Mercosur exported approximately 21,827 million agro-industrial products to the EU between 2018 and 2022.
environmental problem
Paris, meanwhile, pressed its environmental demands on potential South American partners and banned the EU from importing products that are the result of deforestation. He also advocated for Mercosur to incorporate the Paris Agreement’s rules on climate change. Brazil and Argentina believe that South America will not progress at the pace envisioned in the European Green Deal. last saturday, Macron calls agreement signed in 2019 “outdated”. “This was negotiated 20 years ago and we tried to fix it badly because it doesn’t take biodiversity or climate into account.” A day later, European Trade Commissioner Valdis Dombrovskis gave up going to Rio de Janeiro.
About expectations, Lula said, “When each of them assumes the presidency, they take on this task with the desire to do many things. Then we realize that everything is not going the way we wanted. But the concrete reality is that we are moving forward.” He carved his own path, running Mercosur for six months. Paraguay holds the bloc’s interim presidency and has already warned that its priorities will be to seek other trade horizons.