The Financial Times has reported that the European Union and the Mercosur bloc, comprising South American nations, are close to finalizing a trade agreement after twenty years of negotiations. This deal is expected to connect a market of 780 million consumers and could save EU companies more than €4 billion in tariffs each year.
Despite France's objections over environmental and agricultural concerns, the EU is eager to advance the agreement, which includes commitments to the Paris Agreement. Germany, Spain, and other EU members are in favour, seeing it as a means to strengthen economic ties in the face of global uncertainties.
Challenges remain, including Mercosur's resistance to certain EU demands on climate action and deforestation, and disagreements over protected food names and the automotive sector. Yet, officials are hopeful these can be addressed promptly. Ursula von der Leyen's upcoming participation in the G20 summit could be pivotal in discussions with Brazil's President Luiz Inácio Lula da Silva. Concurrently, Uruguay is enhancing dialogue with China for a separate trade deal, while Bolivia has recently become a member of Mercosur, joining Argentina, Brazil, Paraguay, and Uruguay.
Source: trans.info