South America's Mercosur trade bloc is gearing up for a pivotal meeting in Uruguay this Thursday, signaling a potential breakthrough in its long-awaited trade agreement with the European Union. After intense last-minute negotiations, the group appears ready to announce the deal during the summit.
Uruguay's president has scheduled a meeting with European Commission President Ursula von der Leyen at the presidential residence in Montevideo on Thursday afternoon, a positive indicator for the progress of the trade talks.
The proposed trade deal enjoys broad support from most South American countries and is being strongly advocated by key EU members like Germany and Spain. However, France has expressed significant reservations, concerned that increased agricultural imports could adversely affect its robust farming sector.
Recent discussions in Brazil saw negotiators from all parties converge, with senior diplomatic sources indicating that delegations might travel to Montevideo if the virtual talks yield a tentative agreement. The unwavering support from Mercosur's four founding members has bolstered hopes that von der Leyen will attend the December 5-6 summit with the intention of sealing the deal, although some European sources remain cautious about the likelihood of a formal signing.
\"The last round of negotiations ended with important progress,\" stated Mauricio Lyrio, secretary of economic affairs at the Brazilian Foreign Ministry. \"We're hopeful. Pending issues are being submitted to the leaders to be finalized.\"
However, not all voices are optimistic. Bernd Lange, chair of the European Parliament's trade committee, highlighted internal EU challenges as the main barrier to finalizing the deal, noting the uncertainty surrounding von der Leyen's travel plans.
The trade agreement, which has been in the works for over two decades, has faced delays primarily due to European concerns over agricultural competition. In response, Brazil, Argentina, Paraguay, and Uruguay, all major producers of soy, corn, and beef, have criticized what they perceive as European protectionism.
Brazilian President Luiz Inacio Lula da Silva remains confident, emphasizing direct negotiations with von der Leyen during recent in-person talks in Brazil and expressing optimism that the deal will be finalized within the year.
Despite the progress, skepticism remains among some European diplomats. \"If Ursula goes to Montevideo it will be to show EU commitment to concluding the deal, but it will not be signed,\" one diplomat in Brasilia commented, while another in Uruguay estimated a 60-40 chance of the deal not coming to fruition.
Reference(s):
South American, EU negotiators race to close divisive trade deal
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