The presidents of the countries that make up Mercosur, Brazil, Argentina, Paraguay, Uruguay and Bolivia, a brand new member of this space, expressed the desire to “to reach quickly” the delayed trade pact with the European Union. “Considerable progress has been made in recent months. Negotiations continue with the ambition to conclude the process and reach an agreement that is mutually beneficial for both regions and that responds to the demands and aspirations of their respective societies,” it was noted at the closing of the Rio de Janeiro summit. “Based on the progress made so far,” the statement adds, the parties “hope” to achieve a final understanding “that corresponds to the strategic nature of the ties that bind both parties and the crucial contribution they can offer to addressing global challenges in areas such as sustainable development, inequality reduction and multilateralism.”
The expected announcement of a happy ending was left for a next chapter. “I am surprised by their lack of flexibility to understand that we still have a lot to grow, we have a duty to industrialize. And we have to be flexible so that they buy something from us with greater added value. But they are not sensitive to that.” Luiz Inacio Lula da Silva’s reproach had an unequivocal recipient, his French colleague, Emmanuel Macron. “I asked him to stop being so protectionist. Everyone is protectionist when it comes to the agricultural market. They don’t take into account that we can participate in this sunny, extraordinary market,” said the Brazilian president.
Another aspect of discord, he acknowledged, is that of state purchases. “The issue of public procurement is very important for a country to develop. We could not open up as they wanted.” Brazil is reluctant to let European companies compete in Brazilian tenders. The outgoing Argentine Government shares this criterion, but it will surely not be an impediment for the far-right Javier Milei. With the change of authorities in Argentina, talks to revive the agreement will once again be on the agenda of both blocs.
last minute efforts
“I spoke with everyone, the Mercosur and the EU countries. Like never before in history,” Lula said when leaving the temporary presidency of the space that Brazil shares with its neighbors. He admitted that he came to an agreement with the president of the European Commission, Ursula Von der Leyen, invite to the summit in the Wonderful City to the European negotiators to clear up their doubts. It could not be, despite the efforts of the Brazilian president and his Spanish colleague, Pedro Sánchez.
“My motto is to never give up. Because there is nothing that is impossible for us to achieve, not even this attempt at an agreement with the European Union. It has been going on for 23 years, but we have to keep trying,” Lula said.
But the failure is not only attributed to Macron but to the Argentine Alberto Fernández, who refused to endorse the agreement despite requests in the opposite direction from the agricultural and industrial employers of his country. For the Argentine Agroindustrial Council (CAA) it is “key” that Mercosur deepens its global economic integration “in the face of a changing and challenging international context.” Fernández considered, however, that the terms of the pact under current conditions aggravate the asymmetries between both blocs, especially with regard to food and manufacturing exports. Mercosur exported agroindustrial products to the EU about 21,827 million between 2018 and 2022.
The environmental issue
Related news
Paris, meanwhile, insisted on its environmental demands to its potential South American partners and to prohibit the EU from importing products that are a consequence of deforestation. At the same time, he has advocated that Mercosur incorporate the rules of the Paris Agreement on climate change. Brazil and Argentina believe that South America cannot move at the same speed as stipulated in the European Green Deal. Last Saturday, Macron described the agreement signed in 2019 as “obsolete”. “It was negotiated 20 years ago and we have tried to patch it up, in a bad way, because it does not take into account biodiversity or the climate.” A day later, the European Commissioner for Trade, Valdis Dombrovskis, gave up traveling to Rio de Janeiro.
“Each one, when he occupies the presidency, occupies it with a great desire to do many things. And then we realize that not everything goes as we want. But the concrete fact is that we are moving forward,” said Lula about the expectations he set for himself. by leading Mercosur for six months. Paraguay assumes the temporary presidency of the bloc and has already warned that its priorities will be seeking other commercial horizons.