The Brazilian Real led losses in Latin America as lingering concerns over presidential elections overshadowed a largely positive environment for emerging market assets. The US dollar ended trading at 4.333 Reales.
A huge political fight has erupted in the UK government over Brexit, Britain’s controversial decision to break away from the European Union, and it could bring down Prime Minister Theresa May. In the last 24 hours, three members of May's cabinet — Foreign Minister Boris Johnson, Brexit Minister David Davis, and the minister for the Department for Exiting the EU, Steve Baker — quit the government in protest over May’s handling of negotiations with the European Union.
The plenary of the leftist coalition Broad Front concluded on Sunday with a motion that postergates de decision over the Free Trade Agreement (FTA) with Chile, defining to leave the decision on whether or not to support the agreement, delaying the debate to a future plenary whose date is not yet defined. The decision was voted after counting an erroneous sum of the votes in the first instance in which the motion to debate the issue in the plenary had won. However, the votes of the Communist Party of Uruguay (PCU) had been put on the wrong side.
The European Union and Mercosur have made some progress on how to open their markets to cars, but ended free trade talks in Brussels on Friday with finger-pointing about who was holding up a deal. The EU and the Mercosur bloc of Argentina, Brazil, Paraguay and Uruguay began on-off negotiations towards a trade alliance in 1999, with a fresh impetus since 2016.
While Chilean President Sebastián Piñera started a commercial tour in Brazil last Thursday, in which he avoids Uruguay because the Free Trade Agreement (FTA) with Chile is blocked in the Uruguayan Parliament since 2016, ex-president José Mujica explained that he supports the FTA with Chile in order to look for “the best incentives to ensure commercial stability.” The bench of former president Mujica and the communist party refuse to approve the commercial agreement.
The United States and European Union launched negotiations on one of the world's most ambitious free-trade agreements on Monday, promising thousands of jobs and speedier growth on both sides of the Atlantic.
Technical groups from Paraguay and Mexico advanced on Wednesday talks for the creation of an Economic complementation Accord in the framework of the Latam Integration Association, ALADI, which is considered the “step previous to a full free trade treaty”, reported from Asuncion Paraguay’s foreign ministry.
The European Commission agreed Tuesday negotiating guidelines for talks with the United States on the world's biggest Free Trade Agreement, stressing a pragmatic approach to even sensitive subjects.
Brazilian businesspeople and diplomats expressed their disappointment with Mercosur and said it was crucial for Brazil to sign free trade agreements on its own with third countries, which under current rules of the South American trade block are not allowed.
European and Latinamerican leaders agreed in Brussels that the two continents should continue to strengthen links in spite of the serious financial and economic situation facing the European Union.