Progress in EU-Mercosur Trade Talks on Divisive Issues, Sources Report

Significant Progress Achieved in EU-Mercosur Trade Talks

By Anthony Boadle

BRASILIA – Negotiators from the European Union and South America concluded two days of trade discussions on Friday, reporting "significant progress" on key issues that have delayed the long-awaited EU-Mercosur agreement, according to sources familiar with the negotiations.

The talks, which were the first in-person meetings since April, indicate that a positive outcome may be achievable before the year’s end. A source from the Brazilian foreign ministry, where the discussions took place, noted, "The round of negotiations went very well. There was significant progress in the areas of the environment and government procurement."

The official indicated that further negotiations are expected to occur in the coming weeks.

This week, eleven EU countries urged for a swift conclusion to the trade deal, which has been in development for 25 years, in a letter to European Commission President Ursula von der Leyen. The letter expressed a sense of urgency to secure the progress made so far and to finalize the negotiations, suggesting that all conditions are in place for a rapid resolution by the end of 2024. The prime ministers of Germany, Spain, Portugal, Sweden, Denmark, Finland, Croatia, Estonia, Latvia, Luxembourg, and the Czech Republic endorsed this message.

Mercosur includes Brazil, Argentina, Uruguay, Paraguay, and recently Bolivia, representing an attractive market for EU manufacturing exporters, though European farmers, particularly in France, are concerned about increased competition.

The trade agreement was initially concluded in 2019 but has faced hurdles due to EU concerns over deforestation in the Amazon and climate change commitments.

Amid protests from French farmers in January, President Emmanuel Macron reiterated his opposition to the deal, citing potential environmental harm and unfair competition for farmers.

The main French farmers’ union, FNSEA, expressed its discontent on Friday, arguing that resuming talks on the EU-Mercosur agreement would intensify competition for beef, chicken, rice, sugar, and ethanol producers. The union emphasized that European agriculture should be protected and recognized as a strategic sector.

With recent European elections concluded, the eleven prime ministers stressed that now is the time to finalize the agreement. They highlighted that the deal would establish a free trade area of over 700 million people, creating substantial opportunities for European businesses and workers in previously closed markets.