The free trade agreement between the European Union and Mercosur countries will not be concluded in the near future, despite the efforts of the European Commission. The French authorities are happy with the news.
Mercosur is an association of four South American countries, including Brazil, Argentina, Paraguay and Uruguay. The Community and the EU have been negotiating a free trade agreement for more than 20 consecutive years.
European Commission officials had hoped to agree the final vague details of the free trade deal with Mercosur countries in talks expected this week in Rio de Janeiro, Brazil. However, Brazil, which chairs Mercosur, said the deal would require approval from Argentina’s government, which takes office in the coming weeks.
Since the winner of Argentina’s presidential elections, economist Javier Milei, is known for his libertarian ideas and offered to leave Mercosur altogether during the election campaign, Brazil’s decision means that no deal can be concluded as long as the position of the new Argentine government will not be clear.
Therefore, European Commission President Ursula von der Leyen and Trade Commissioner Valdis Dombrovskis decided not to travel to the talks that were supposed to take place in Brazil.
While the commission is concerned about the latest developments, the French government is satisfied with the suspension of negotiations for an indefinite period, Politico reports.
On Saturday last week, French President Emmanuel Macron criticized the proposed deal after a meeting with Brazilian President Lula da Silva.
“I don’t support this agreement because I don’t know how to explain it to a steel producer, a farmer or a French cement producer,” Macron said. At the same time, the president added that he will go to another meeting with Lula in March next year.
Representatives of Macron’s liberal Renaissance (RE) party expressed satisfaction at the breakdown of the talks.
“This is good news,” said MEP Marie-Pierre Vedrenne.
“As soon as you start talking about free trade agreements, you will be criticized in France,” he added. According to Vedrenne, his only problem is that the agreement was carried out on the initiative of Mercosur and not the European Commission.
The EU’s proposed deal with Mercosur is unpopular in France, often criticized by farmers and non-profit groups. The French government is only willing to approve the deal if Mercosur promises to end illegal logging in the Amazon rainforest, fulfill its obligations under the Paris climate agreement and apply the same rigorous standards to agricultural production as the EU.
According to South American countries, these requirements are too strict.
Macron’s party has come under pressure from both the right and left ahead of next year’s European Parliament elections over a potential free trade deal. Critics say this would put the livelihoods of French farmers at risk.
French lawmaker Pascal Lecamp, a Macron supporter, told Politico that the deal would have to be completely rewritten if it were to go ahead. The MP added that the European Commission should not conclude any agreement before the European Parliament elections.
2023-12-04 15:55:00
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