Negotiators for the trade agreement between the European Union and Mercosur met in Brasilia last week for a negotiating session, with the aim of concluding negotiations shortly.
According to Politico, the European Commission would like to announce an agreement on the sidelines of the G20 leaders’ meeting in Rio de Janeiro on 18 and 19 November. With this in mind, the Commission is planning a compensation fund for European farmers adversely affected by the trade agreement.
However, the prospects for reaching a conclusion next month are not so good, according to two sources contacted by Agence Europe. While negotiators are indeed moving closer to a point when they could give the political green light to announce an agreement, according to one source, the political context remains complicated, despite recent overtures.
The proposal to delay application of the Deforestation Regulation may have appeased Mercosur’s partners (see EUROPE 13505/13). And pressure is mounting from liberal countries and large sections of industry to speed up the signing of new free trade agreements.
However, the Commission still cannot count on the support of France, which is backed by Austria, the Netherlands and Ireland. The agreement with Mercosur, “as it stands, is not an acceptable treaty. We are calling for substantial compliance with the Paris Agreement and the mirror clauses, and for the interests of European industries and farmers to be protected”, reiterated French President Emmanuel Macron at the close of the European Council on Thursday 17 October. (Original version in French by Léa Marchal)