Brazil has informed the European Commission of its refusal to renegotiate the Mercosur-EU agreement in light of France's request for an additional safeguard to shield its agricultural sector.
The proposed safeguard targets specified thresholds for beef, chicken, and sugar imports from Brazil, Argentina, Paraguay, and Uruguay via an extra "political protocol." Despite never formally proposing the new safeguard, the European Commission, representative of the 27 EU member states, is aware of Brazil's firm rejection. Brazil views any new safeguard measures as a reopening of the agreement concluded in Montevideo, which they oppose.
The European Commission previously highlighted on its website its achievement for European farmers through the deal. It mentioned limited access for Mercosur agricultural imports, with restrictions on sensitive items like beef, poultry, and sugar implemented through quotas. A bilateral safeguard clause could activate to address potential harm from Mercosur imports. Notably, this clause also covers imports within existing quota limits.
Observers note France's dissatisfaction with the Mercosur deal persists. Initially, France demanded Paris Agreement compliance guarantees, and now, it seeks new agricultural safeguards. If granted, France would likely raise further issues. The French quest for extended negotiations appears to be driven by domestic political motives.
Despite acknowledging the benefits of the Mercosur deal, segments within the French government maintain that President Macron's firm stance complicates any policy reversal. Reports indicate France could explore a side agreement addressing matters outside the current accord.
The European Commission promised to present the deal to the European Council for leader review by the end, a step yet to be realized. There's a strong push for Brussels to finalize its stance instead of delaying decisions.
Germany's Chancellor Friedrich Merz will meet French President Macron in Berlin, marking their initial talks since Merz assumed office. The summit will cover the EU-Mercosur agreement alongside topics like defense, economic strategies, and migration policy. Germany prioritizes the agreement's enactment, whereas Macron might highlight Brazil's revised environmental licensing bill, recently criticized by Environment Minister Marina Silva.
The challenge lies in addressing Brazil's legislative choice while engaging in US trade talks. Argentina, represented by Javier Milei, showcases steadfast support for the EU agreement despite potential uncertainties, aligning with ally Donald Trump.
Source: Datamar News
