South America’s Mercosur trade bloc is set to meet in Uruguay on Thursday with fresh hopes of announcing a long-delayed trade deal with the European Union. After over two decades of negotiations, last-minute talks have injected new optimism into reaching an agreement that could significantly impact global trade dynamics.
Uruguay’s President has scheduled a meeting with European Commission President Ursula von der Leyen at the presidential residence in Montevideo, signaling a positive step forward in the trade discussions. The meeting suggests that both parties are eager to close the deal and overcome longstanding obstacles.
The proposed trade agreement has garnered support from most South American countries and is being actively pushed by Germany and Spain within the EU. However, France has expressed strong opposition due to concerns over agricultural imports that could affect its powerful farming sector. This tension highlights the complex balance between protecting domestic industries and pursuing broader economic benefits.
Negotiators from all sides convened in Brazil last week, with plans for delegations to travel to Montevideo if virtual talks yield a breakthrough. According to senior diplomatic sources, all four founding members of Mercosur—Brazil, Argentina, Paraguay, and Uruguay—support the current terms of the deal, increasing the chances of reaching a consensus.
The potential for von der Leyen to attend the December 5-6 summit in Montevideo has heightened expectations that an agreement could be finalized soon. While some European sources caution that a formal signing may not occur immediately, the reserved plane ticket for von der Leyen underscores the earnest efforts to close the deal.
“The last round of negotiations ended with important progress,” said Mauricio Lyrio, Secretary of Economic Affairs at the Brazilian Foreign Ministry. “We’re hopeful. Pending issues are being submitted to the leaders to be finalized.”
Despite the optimism, challenges remain. Bernd Lange, a German Social Democrat who chairs the European Parliament’s trade committee, noted that internal EU dynamics are a significant hurdle. “They are discussing on the 13th floor [office of the Commission President] taking the luggage and going to the airport or not. It’s a little bit complicated,” he remarked during a briefing.
The trade deal has faced delays due to European concerns over competition in the farming sector, while Mercosur countries have criticized European protectionism. Brazil, Argentina, Paraguay, and Uruguay are major producers of soy, corn, and beef, and seek expanded access to European markets.
Brazilian President Luiz Inácio Lula da Silva expressed confidence that the agreement could be finalized this year, mentioning that negotiations are happening directly with von der Leyen. “We are negotiating directly. I believe we can reach an agreement soon,” he said during recent talks in Brazil.
However, skepticism persists. A European diplomat in Brasília commented, “If Ursula goes to Montevideo, it will be to show EU commitment to concluding the deal, but it will not be signed.” Another diplomat in Uruguay added, “I’m still 60-40 that it fails to go anywhere.”
The coming days will be critical as leaders from both sides work to bridge differences and potentially reshape trade relations between South America and Europe. A successful agreement could open new markets, boost economies, and strengthen ties between the regions.
Reference(s):
South American, EU negotiators race to close divisive trade deal
cgtn.com
