The European Union (EU) is pushing to finalize its long-anticipated trade agreement with the South American trade bloc Mercosur by the end of the year, according to EU Commissioner for Crisis Management Janez Lenarcic. Despite remaining points of contention, the EU remains optimistic about reaching a deal with Mercosur, which includes Brazil, Argentina, Uruguay, Paraguay, and, most recently, Bolivia.
Deforestation Law Remains a Key Issue
A major hurdle in the negotiations is the EU’s new law banning imports of products linked to deforestation. While the regulation will not be altered, the EU has agreed to delay its implementation until the end of December 2025 to address concerns raised by Mercosur countries, particularly Brazil. “The European Union wants this agreement; let me be very clear about that,” Lenarcic stated in an interview during a G20 summit focused on climate challenges in Brazil.
Balancing Economic Opportunities and Environmental Standards
Mercosur represents a significant export market for EU manufacturing, although European agricultural sectors, especially in France, have expressed concerns over increased competition from South American products. EU negotiators are working to find solutions to address both the competitive fears of European farmers and the environmental concerns tied to deforestation.
This trade agreement has been in development for over 25 years, with a preliminary version announced in 2019. However, ratification stalled as the EU pushed for stronger commitments from Mercosur countries on Amazon deforestation and climate action.
Upcoming Negotiations and Timeline
Negotiators from both blocs will meet online in the coming days, with in-person talks set for late November. The EU hopes to conclude the agreement before Mercosur’s December meeting in Uruguay, according to Brazil’s foreign ministry.
With this agreement, the EU seeks to expand its economic partnership with South America while adhering to environmental standards, aiming for a balanced approach that supports both trade and sustainability.
Stay connected to know more on arcnews.online for global news like EU Aims to Finalize Trade Deal with South American Mercosur Bloc by Year-End. For videos updates visit our YouTube. Do subscribe to Arcnews to get latest updates directly in your mail box.
Have A Great Day.
