The tour of Latin America by the President of the European Commission, Ursula von der Leyen, kicked off in Brazil, where she met the Brazilian President, Luiz Inácio Lula da Silva, on Monday 12 June. The two leaders addressed the EU/Mercosur trade agreement currently under discussion between the two blocs. “Finally, we are close to the finish line. It is time that we crossed it, because the benefits are clear”, insisted Ms von der Leyen in a speech to the Brazilian Confederation of Industry (CNI).
For the time being, the ball is in the court of the Mercosur countries, which must submit a counter-proposal to the EU concerning the additional instrument to the agreement specifying obligations in terms of the environment and sustainable development (see EUROPE 13148/21).
However, the Brazilian President was less assertive on the subject on Monday 12 June. “I told Ms von der Leyen the concerns Brazil has in relation to the additional instrument. It enhances Brazil’s obligations and makes it subject to sanctions. A partnership is mutual confidence, not mistrust and sanctions”, he told the press. He also added that certain recently adopted European legislation had an extraterritorial effect and altered the balance of the agreement.
Ms von der Leyen tried to point out the many benefits of the free trade agreement, in her view. She added to her Brazilian counterpart: “We’re very much looking to your answer to the protocol to see where we can improve, where we have to make a step towards each other, so that we can conclude the Mercosur agreement by the end of the year”.
In addition to Brazil, the Commission still has to convince a number of Member States such as France and Austria (see EUROPE 13146/11). The French National Assembly will debate and vote on a resolution against the current agreement on 13 and 14 June. In particular, the authors of the resolution are calling for a clause suspending the agreement in the event of non-compliance with the Paris Agreement by one of the Mercosur countries.
As for the Member States in favour of the agreement, they are encouraged by the representative of employers in the EU, BusinessEurope, and the Brazilian CNI, which issued a joint statement reiterating their support for the agreement on Monday 12 June.
In it, they call on the leaders of the EU and Mercosur to seize the opportunity to move discussions forward. For these two representatives, the negotiators must also “allow for the appropriate flexibility to reach a balanced, time-sensitive agreement that delivers for both societies”.
Partnership on critical raw materials
The two Presidents - Ursula von der Leyen and Luiz Inácio Lula da Silva - also announced the launch of a strategic partnership between the EU and Brazil on critical raw materials. “This will help meet the rising demand and create good jobs in Brazil”, said Ms von der Leyen. (Original version in French by Léa Marchal)