EU and Mercosur Seek Breakthrough in Long-Standing Trade Talks

The European Union aims to finalize a trade agreement with the South American bloc Mercosur by year-end. Despite differences, particularly regarding a new EU deforestation law, talks are progressing. A fresh round of negotiations is set for November, with hopes for an agreement by December.

The European Union is targeting the conclusion of its trade agreement with the South American bloc Mercosur by the end of the year, according to EU commissioner Janez Lenarcic.

Despite not being directly involved in the negotiations, Lenarcic cited the EU's new deforestation law as a major hurdle. The legislation bans imports linked to forest destruction, with negotiations impacted, especially concerning Brazil.

Lenarcic confirmed the law will not be changed, though its implementation might be delayed by a year. Negotiators from both blocs plan to meet online soon, with face-to-face talks set for November.

(With inputs from agencies.)