Mercosur–EU deal not likely to be ambitious, Brazil chancellor says

The commercial agreement between Mercosur and the European Union (EU), under negotiation for 18 years, will see another round of talks from July 8 to 13. In the opinion of Brazilian Foreign Minister Aloysio Nunes, the deal is not likely to be very ambitious, and will probably be similar to other pacts inked by the Europeans in recent times.

“We’ll resume technical negotiations on [July] 8 in the hopes that we have the conditions to close a deal that is not very ambitious, but has an ambition similar to that of the agreement signed by the European Union with Canada, Japan, and Mexico.”

Aloysio Nunes explained that entering an accord with the European Union requires consensus among over 20 countries in the bloc, as decision must be unanimous among member countries.

The minister said that the deal was brought back to the two nations’ agenda after the US adopted a more protectionist stance under Donald Trump, which also warmed up talks between Mercosur and other partners in the Americas, like Canada and Mexico. The South American bloc is also holding talks with South Korea and should start negotiations with Singapore soon.

Window of opportunity 

Marcos Jorge de Lima, ministry of Industry, Foreign Trade, and Services, told journalists that the window of opportunity will be open until August, before Brazil and the European countries once again resume their electoral agendas.

According to Minister Lima, the EU has sought to make the announcements on its deals sooner, so that the specialists may continue to draft the terms in the following months. This is believed to have been the case with Canada, Mexico, and Japan.

The minister argues that, if the same takes place for Mercosur, the technical text may reach its final form by December and could be submitted to Congress for vote by 2019, in lawmakers’ next tenure.

A consensus is still to be reached on maritime transport, car industry, and the rules governing the origins of products like champagne, and cheese varieties linked to specific regions.