Brussels, Jun. 13, (dpa/GNA) - European Commission President Ursula von der Leyen wants to conclude a free trade agreement between the European Union and the Mercosur bloc of South American countries “by the end of the year.”
“We both believe it is now time to conclude the Mercusor agreement. We have the ambition, the two of us, to get it done as soon as possible,” von der Leyen said on Monday after talks with Brazilian President Luiz Inácio Lula da Silva.
The EU has been negotiating with Mercosur – which includes Brazil, Argentina, Paraguay and Uruguay – since 1999 on the agreement, which would create one of the largest free trade areas in the world with more than 780 million people.
Obstacles on the EU side include demands for the Amazon rainforest to be protected and for deforestation for the purposes of livestock-keeping and for agriculture to be halted. The agreement still has to be ratified by all member states.
The deal is also controversial in South America, with some countries wanting to protect their markets and others fearing the softening of labour or environmental standards.
“I think there are huge advantages on both sides. The agreement will create the right conditions for investment to flow,” von der Leyen said at a joint news conference in Brasília.
Lula criticized the latest plans for a supplementary declaration to the agreement, which is mainly intended to appease critics without unravelling the treaty once again.
Lula said that this additional side letter to the accord could pave the way for sanctions in case Brazil does not meet EU demands.
“The premise between strategic partners must be mutual trust, not mistrust and sanctions,” he said.
GNA