Negotiations for a trade agreement between the European Union and four South American countries appear to be experiencing additional delays. According to French President Emmanuel Macron, the environmental commitments that Brussels has received are not enough. In doing so, he dashes recent hopes for a speedy agreement.
After meeting with Brazilian President Luiz Inácio Lula da Silva in Dubai this weekend, Macron said he cannot ask farmers and industrialists in France and across Europe “to make an effort to reduce CO2 emissions while all tariffs are suddenly abolished to bring in goods that are not subject to the rules.”
This concerns a treaty with the countries of Mercosur, i.e. Argentina, Brazil, Uruguay and Paraguay. There has been talk of a special trade deal with those countries for about two decades. The EU-Mercosur pact could create an integrated market of 780 million consumers, making it the largest free trade agreement in EU history.
However, there has been strong opposition to the possible agreement for some time in several European countries, including the Netherlands. The opposing parties fear that the treaty will lead to a “significant increase in unfair competition for European farmers”. According to them, the safety of imported meat is also at stake and it leads to additional deforestation of the Amazon.
Macron also does not like the deal. “I am not in favor of this agreement because I don’t know how to explain it to a steel producer, a farmer or a French cement manufacturer,” the French president said. “And since I cannot explain it at home, I will not defend it at international summits.”
The German business community hopes for a deal. “The agreement not only opens up additional market opportunities in an important economic region for German companies, but also offers important opportunities for diversification of the supply chain and the supply of raw materials,” said the Deutsche Industrie- und Handelskammer (DIHK).
Free unlimited access to Showbytes? Which can!
Log in or create an account and never miss anything from the stars.