On Monday 18 June, Uruguay's President Tabaré Vázquez, whose country is to chair the Mercosur bloc (Argentina, Brazil, Paraguay and Uruguay) from 1 July, put pressure on the European Union for a swift conclusion of the free trade agreement that has been under negotiation since 1999.
"We are not prepared to waste time in eternal negotiations. Nor are we prepared to sign a watered-down version (of the agreement)”, Vázquez warned, saying that Uruguay wanted to negotiate a free trade agreement with China, its biggest trading partner.
The previous day, Uruguay's Foreign Affairs Minister Rodolfo Nin Novoa asked the EU to show "real resolve" to seal an agreement, suggesting that Mercosur re-direct its priorities towards other regions, like China.
"We should not abandon the idea of this alliance. Closing the doors now would impede negotiations which recently have had reasonable success”, Brazil's President Michel Temer tempered, calling also for trade negotiations with Chile, Colombia, Mexico and Peru.
During the Luque summit (Paraguay) on 17 and 18 June, the leaders of the Mercosur countries underlined "the need for political support from both parties" for an agreement with the EU, thus pushing for free trade negotiations with other Western or Asian countries to counter US protectionism.
Before handing the Mercosur presidency over to Uruguay, Paraguay last weekend stated that the EU's sensitivities on agricultural issues, and the sensitivities of Argentina and Brazil on automobiles, are factors that are slowing down the conclusion of an agreement (see EUROPE 12043).
"The EU remains determined to reach an agreement", the European Commission stated on Monday 18 June, deeming that "Mercosur still has work to do on several chapters" (cars and spare parts, geographical indications, maritime transport and dairy products).
Following a round of negotiations in Montevideo in early June (see EUROPE 12043), a new round is due to be held in Brussels in mid-July. The two parties are keeping focused on reaching an agreement before the summer break and, in the medium-term, before the general elections in Brazil in October. (Original version in French by Emmanuel Hagry)