The state of negotiations on several trade agreements between the EU and third countries was the main item on the agenda of the informal meeting of trade ministers in Valencia on Friday 20 October.
The discussions, led by the Spanish Presidency of the EU Council, focused mainly on the agreements with Mercosur, Australia, India and Mexico.
For the ministers, the need at this stage of the discussions is to clarify the red lines that are impossible for the EU to cross in terms of trade agreements, and the areas where there can be greater flexibility.
“Difficult” discussions with Mercosur
This is the priority trade issue for the Spanish Presidency of the EU Council. Although negotiations on the agreement with Mercosur were finalised in 2019, the two parties have not resolved their disagreements over the additional instrument (see EUROPE 13251/3). Last July, Brazilian President Lula da Silva described the EU’s environmental demands as “aggressive”.
“We have very clear conditions on respect for the environment and fair competition. We must ensure compliance with the health and environmental standards that we already impose in Europe”, declared Olivier Becht, the French Minister for Foreign Trade, on his arrival at the meeting.
“The difficulty lies in finding a way to harmonise our own regulations within the EU, such as the Green Deal, with the trade agreements signed with our partners”, Xiana Méndez, Spain’s Secretary of State for Trade, told the press after the meeting.
Despite the difficulties and delays, the Spanish Presidency of the Council remains optimistic and hopes to conclude the agreement in the first half of 2024.
India, a crucial market
The three agreements currently being ratified with India were also discussed at the end of the afternoon.
There is a differing level of progress on the three agreements: while the issue of geographical indications is well advanced, positions are “further apart” on the subject of investment protection.
As for the free trade agreement, “the political will is there, but there are still a series of chapters to be negotiated, particularly on the issue of tariff and non-tariff barriers”, explained Ms Méndez.
Australia, Mexico and Chile
With regard to the agreements with Australia and Mexico, the Spanish Presidency’s stated ambition is to conclude the final negotiations by the end of the year. “We share an affinity of values and principles with Australia, which provides a very good basis for agreement”, emphasised Ms Méndez. “But there are still demands on both sides and, therefore, work to be done to find a balanced solution”.
Regarding Chile, all that is missing is the ratification procedure for the agreement to come into force. Once again, the ministers have shown their determination to ensure that this ratification is completed in a timely manner. (Original version in French by Isalia Stieffatre)