Decades in the making, agreement with Mercosur nations nears finishing line
The EU and the Mercosur group of five South American countries aim to conclude negotiations for a long-delayed trade deal before the end of the year after making progress towards resolving contentious issues. Officials from both sides have told the Financial Times there is fresh impetus to tie up the agreement, which is two decades in the making, despite French objections. “It’s a geopolitical and economic necessity,” said an EU diplomat.
Mercosur members complain that European concerns over the environment mask protectionist tendencies. Brasília was angered by a side letter Brussels sent last year that sought to add binding climate and deforestation commitments. Other irritants include a separate EU anti-deforestation law, due to come into effect next year, which will ban the import of goods such as wood, beef and coffee produced on deforested land.
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