Hopes Rise for EU-Mercosur Trade Deal in Brasilia Talks

EU and South American negotiators will meet in Brasilia from Sept. 4-6 for in-person talks on the EU-Mercosur trade deal. The deal has faced delays due to environmental concerns and opposition from European farmers. Both parties aim to finalize the agreement by the end of the year.

European Union and South American negotiators are set to meet in Brasilia from September 4-6, marking the first in-person talks since April. Diplomats are optimistic that this meeting could lead to the finalization of the EU-Mercosur trade deal this year.

The trade agreement has been in development for two decades but has faced numerous delays. European environmental safeguard concerns and accusations of protectionism from the Mercosur bloc have been significant hurdles. Despite these challenges, a European diplomat expressed confidence, stating, 'The end-of-year timetable for conclusion is realistic.'

Brazil's foreign ministry confirmed the meeting dates, though responses from Argentina, Uruguay, and Paraguay were not immediately available. In March, the negotiations faced a setback when French President Macron labeled the deal a 'very bad deal' during a visit to Brazil, citing opposition from French farmers. The talks were paused until after the EU parliamentary elections in June. Issues on the negotiating table include European food product name protections and Brazilian resistance to an impending EU anti-deforestation law. European farmers, particularly from France, Germany, and Belgium, have protested against the competition from cheaper South American imports. EU Commission President Ursula von der Leyen and Brazilian President Luiz Inacio Lula da Silva remain committed to concluding the agreement by year's end. International relations scholar Ignacio Bartesaghi emphasized that Brazil wishes to maintain negotiation continuity amid concerns that Argentina's President Javier Milei might withdraw support, despite his government's backing of the talks since taking office.

'Brazil wants to give a sense of continuity to the negotiations,' Bartesaghi added.

(With inputs from agencies.)