South American Mercosur countries are considering holding a high-level summit with senior European Union officials in Brasilia in late January or early February to conclude a long-delayed trade agreement, POLITICO reports.
The exact date of the meeting has yet to be named, but it is likely to take place shortly before or shortly after an internal meeting of Mercosur countries on 31 January, diplomats said, speaking on condition of anonymity to avoid discussing confidential matters.
There had been high hopes that the leaders of the EU and the Mercosur group, which includes Argentina, Brazil, Paraguay and Uruguay, could shake hands on the trade pact during the Mercosur summit in early December.
However, the rise to power of right-wing libertarian Javier Milei as Argentina’s president created a last-minute obstacle: Argentina’s outgoing president Alberto Fernandez, whose leftist party was about to move from government to opposition, suddenly announced that he could no longer sign the agreement, saying it had negative consequences for local businesses.
Political allies on the Mercosur side and on the EU side were shocked by Fernandez’s announcement, as it cast doubt on the conclusion of a pact that had been in the making for a quarter of a century.
On the EU side, France also reiterated its opposition to the agreement.
However, there is now renewed optimism that a breakthrough is still possible before the end of the European Commission’s term and the European Parliament elections next June. Although a more sceptical Paraguay now holds the presidency of the Latin American grouping, it has signalled that it would be happy for Brazil to continue negotiating with the European Commission.
Mercosur diplomats say technical-level meetings will be held until January to iron out remaining differences on the chapter on trade and sustainability and to give Mercosur companies greater protection from European competition in procurement.
