The conclusion of a free trade agreement between the EU and the Common Market of South America (MERCOSUR) is not far off. The EU seeks to resolve unresolved differences, said European Commission President Ursula von der Leyen, who arrived at a two-day meeting of leaders of EU member states and the community of Latin America and the Caribbean, which began on Monday in Brussels.
Von der Leyen, who held a press conference with the President of Brazil Luis Inacio Lula da Silva, stressed that Brazil has once again become a major player on the world stage, giving a positive impetus to the strategic partnership between the two regions. She said Monday’s talks will discuss how the two continents could work together more effectively to consolidate their businesses, strengthen supply chains and modernize their economies. She added that the EU is attracting significant investment to Latin America and the Caribbean, creating jobs and a level playing field.
Luiz Inácio Lula da Silva presented his vision for completing the current trade agreement and expressed his hope that a new “balanced” agreement would be reached by the end of the year. He added that the countries of Latin America and the Caribbean expect investments in social and urban infrastructure and logistics.
At a Mercosur meeting in early July, Lula da Silva expressed concern about an annex to the convention proposed by Brussels, containing provisions on climate, environmental protection and human rights.
No progress has been made on the Free Trade Area since 2019, largely due to EU reservations about deforestation in the Amazon. The agreement would create one of the largest free trade zones in the world. If an agreement is reached, it must be ratified by Mercosur and all EU member states, but there are disagreements in both South America and Europe. Some countries fear for their markets, while others fear weakening their labor and environmental standards.
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2023-07-17 14:55:00
