EU and South American negotiators have made “significant progress” on contentious issues in trade talks, according to insiders, in a move that could mark a breakthrough, particularly for the controversial EU-Mercosur deal.
“The round of negotiations went very well. Significant progress was made in the areas of environment and public procurement,” said an official from the Brazilian Ministry of Foreign Affairs.
“There will be a new round of negotiations in a few weeks,” the official added. The insiders said the talks continued to point to a positive conclusion before the end of the year.
Negotiations spanning decades
Eleven EU governments also wrote a letter to European Commission President Ursula von der Leyen this week calling for a swift agreement on the trade deal, which has been under negotiation for 25 years.
“There is now an urgent need to secure the progress made to date and conclude the negotiations,” the letter, seen by Reuters, said. “We are confident that all conditions are in place to conclude the negotiations swiftly by the end of 2024.”
Environmental concerns as a stumbling block
After more than two decades of negotiations, the deal was finalised in 2019, but was held up by EU demands for commitments on Amazon deforestation and climate change.
The Mercosur group includes Brazil, Argentina, Paraguay, Uruguay and, most recently, Bolivia. The agreement would allow the EU and South America to create the world’s largest trading area, with more than 720 million people. The zone would cover almost 20 percent of the global economy and more than 31 percent of global merchandise exports.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
