EU-Mercosur Trade Deal: Balancing Tariffs and Conservation

A Stanford professor suggests tying EU-Mercosur trade deal tariffs to deforestation levels. The proposal aims to expedite tariff cuts for Mercosur if conservation efforts rise, addressing environmental concerns blocking the 2019 agreement. EU hesitations persist, while diplomats doubt the feasibility of this approach.

The long-delayed EU-Mercosur trade deal might find new traction through an innovative proposal to tie tariff reductions to deforestation control. Bard Harstad, a Stanford political economy professor, suggests that this strategy could overcome environmental hurdles that have stalled the agreement first reached in 2019.

The EU's new legislation aimed at barring deforested-area products has faced backlash from Brazil, seeing it as protectionist. Harstad believes linking reduced tariffs to improved conservation could benefit both regions economically and environmentally, despite EU's postponement of such measures.

Critics, including negotiating diplomats, express skepticism about the practicality of Harstad's proposal, fearing it could disproportionately burden Mercosur countries. The European Commission remains focused on aligning the deal with sustainability goals, yet questions remain over its implementation feasibility should the proposal be considered.

(With inputs from agencies.)