Breakthrough in EU-Mercosur Trade Negotiations: Significant Progress Made

European Union and South American negotiators achieved significant progress on key issues in the long-overdue EU-Mercosur trade agreement during two days of talks. The negotiations mainly addressed the environment and government procurement. Despite French farmers' resistance, the agreement is moving towards a potential conclusion by year-end.

European Union and South American negotiators ended two days of trade negotiations on Friday with 'significant progress' on contentious issues that have been holding up the long-overdue EU-Mercosur agreement, two sources close to the talks said. The sources noted that the meeting, the first in-person talks since April, went well and that discussions remain on track for a positive resolution by the end of the year.

'The round of negotiations went very well. There was significant progress in the areas of the environment and government procurement,' said a source at the Brazilian foreign ministry where the talks were held. 'A new round of negotiations should take place in a few weeks,' the official added.

Mercosur, which includes Brazil, Argentina, Uruguay, Paraguay, and more recently Bolivia, represents a lucrative market for EU manufacturing exporters. However, European farmers, particularly in France, are wary of the competition the deal might bring. The agreement, finalized in 2019, has been stalled due to EU demands for commitments on Amazon deforestation and climate change.

In January, amid protests by French farmers, French President Emmanuel Macron reiterated his opposition to the deal, citing environmental damage and unfair competition risks for French agriculture. The main French farmers' union, FNSEA, opposed the resumption of talks on Friday, asserting that the EU-Mercosur agreement would intensify competition for beef, chicken, rice, sugar, and ethanol producers.

'European agriculture should not be sacrificed to conclude international trade accords. On the contrary, agriculture should be protected and considered one of the main strategic European sectors,' the union stated.

(With inputs from agencies.)