Despite progress on some issues like services, the latest session of technical-level talks on the trade section of an association agreement between the EU and Mercosur bloc (Brazil, Argentina, Uruguay and Paraguay), which was held in Montevideo from 4 to 8 June, still did not enable any decisive breakthrough, especially on automobiles, for an agreement in principle.
"The parties achieved progress on several issues such as services, and exchanges were constructive overall, but there is still work to be done – notably on cars and car parts, geographical indications, maritime transport and dairy", the European Commission summarised in a short press release published on Tuesday 12 June.
"The EU continues to be committed to completing an ambitious and mutually-beneficial agreement with Mercosur as soon as possible", it added.
According to EUROPE's sources, a new round of technical level negotiations is expected to be held in Brussels in mid-July.
The two parties are staying focused on reaching an agreement before the summer break, and in the medium-term, before the general elections in Brazil in October.
The European negotiators are keeping up pressure on their South American counterparts to obtain concessions on access to the automobile market – and all the more so now that the USA is threatening to raise tariffs on car imports, a European source stated.
According to the same source, the EU could therefore improve its offer on access to the European market for certain sensitive products like sugar, and also poultry – a sector which is affected in Brazil by the anti-dumping duties recently established by China.
On the Mercosur side, "everyone wants to finalise an agreement quickly. It would be a good response to the protectionism of the USA", a South American source told EUROPE. (Original version in French by Emmanuel Hagry)