During a phone call on Tuesday, German Chancellor Olaf Scholz and Argentine President Javier Milei expressed their belief that negotiations for the EU-Mercosur trade agreement, which has been ongoing for a long time, should be wrapped up promptly.
According to a statement from the German government, Scholz, aged 65, and Milei, aged 53, recently had a phone call to talk about topics like bilateral and multilateral matters, as well as the trade agreement between Mercosur and the European Union.
Berlin’s statement conveyed that they reached a consensus to promptly finalize the negotiations on the free trade agreement.
The free-trade agreement between the Mercosur trade bloc (which includes Brazil, Argentina, Paraguay, and Uruguay) and the European Union, which was agreed upon in 2019 after two decades of on-off negotiations, has not been formally approved as of yet.
European concerns regarding Brazil’s environmental policy during Jair Bolsonaro’s tenure as president, regulations pertaining to agricultural imports and exports, and ideological disputes are the key points of contention.
The trade deal was desired to be concluded quickly by Mercosur leaders, as stated in a statement released after a meeting of heads of state in Rio de Janeiro last month.
The Brazilian President, Luiz Inácio Lula da Silva, who hosted the summit, expressed his desire to finalize the agreement before passing on the presidency of the bloc to Paraguay. Unfortunately, ongoing obstacles once again caused a delay in reaching a deal.
The attitude has become more positive since Lula regained power, as he has pledged to actively fight against the widespread deforestation that occurred during Bolsonaro’s tenure. However, the European Union’s newly proposed requirements to address environmental concerns have caused additional strains in the situation.
Germany, within the EU, is viewed as a prominent advocate of the free-trade agreement, as it holds significant importance for its influential industrial sector. France, under the leadership of President Emmanuel Macron, is believed to be less enthusiastic about it.
– TIMES/AFP
