Commission President Ursula von der Leyen today pledged the EU and the Mercosur bloc would conclude their long-delayed trade agreement by the end of the year.
Speaking alongside Brazil’s President Luiz Inácio Lula da Silva, von der Leyen said: “We both believe it is now the time to conclude the EU-Mercosul agreement. We have the ambition, the two of us, to get it done as soon as possible, the latest by the end of the year.”
The deal between the EU and the Mercosur bloc — Brazil, Argentina, Uruguay and Paraguay — has been in the making for over two decades, and Brussels is now gearing up to speed up talks ahead of an EU-Latin America summit in mid-July.
EU trade negotiators presented an extra sustainability document to the Mercosur countries earlier this year to try to assuage concerns in Europe over deforestation in the Amazon. France and Austria are among the long-standing opponents to the deal over climate and agricultural concerns.
The Commission has pressed the Mercosur bloc to send its response to the addendum, with officials hoping to receive it in the second half of June.
But Lula stressed concerns that the extra protocol added obligations that may lead to sanctions if not respected.
“I told President von der Leyen about the concerns we have about the additional instrument that enhances Brazil’s obligations and makes Brazil the object of sanctions in case of breach of the agreement,” Lula said during the joint press conference.
“The premise that should exist between strategic partners should be mutual confidence and not mistrust or sanctions,” he added.
On Monday, the Commission’s chief kicked off a week-long trip through Latin America, heading to Brazil, Argentina, Chile and Mexico, in the hope of bringing those countries closer to Brussels against the backdrop of growing geopolitical rivalry with China, and Russia’s war in Ukraine.
The trip comes on the heels of the Commission’s presentation of its new political strategy for relations with Latin American and Caribbean countries.
Negotiators from both sides are scheduled to meet at the end of the month.