Brazil urged for agreement with EU, since next year it will lose trade preferences

Monday, August 12th 2013 - 18:03 UTC

Full article 9 comments

Antonio Patriota explained Brazil’s position to the Financial Times

Brazil, Latin America‘s biggest economy, is planning to try to negotiate a separate trade deal with the European Union, Foreign Minister Antonio Patriota said in remarks published Monday.

Brazil has been struggling since 1999 to reach such a deal with the EU alongside its partners in the Mercosur economic bloc: Argentina, Venezuela, Paraguay and Uruguay.

But the issue has become more urgent because rising Brazilian prosperity means it is set to lose EU trade preferences next year. A separate trade deal would help it regain them and could be presented in Brussels before the end of the month.

Patriota told Britain‘s Financial Times that Brazil would present a proposal this month for a Mercosur-EU deal that would allow Brasilia to move ahead with its own agreement.

“There are objective conditions that create strong incentives for an advance on the EU-Mercosur front,” he was quoted as saying.

But, he said, there was “an anticipation that each [Mercosur] country may be able to negotiate at separate speeds.”

Any deal could cover 80 billion dollars worth of bilateral trade between Brazil and the EU. Brazilian officials have insisted, however, they remained firmly committed to Mercosur.

Categories: Economy, Politics, Brazil, International, Latin America, Mercosur.

Tags: Antonio Patriota, Brazil, EU-Mercosur, European Union.

Top Comments

Disclaimer & comment rules

Porto Margaret
Brazil seems to have had enough of being held back by Argentinas regimes foolish and selfish power games within Mercosur.

Striking out on its own is the obvious answer and not just with an EU deal. Which other countries will follow? KFC is a scraggy lame duck now anyway.
Aug 12th, 2013 - 06:59 pm 0
Math
Brazil will soon face its internal reality. Next elections are going to be decisive for the future of the country. More Chile or more Cubazuela.
Aug 12th, 2013 - 09:45 pm 0
GeoffWard2
'.. lose trade preferences' .... yes, *Patriota* and Brasil have left it too late to create a Mercosur agreement with the EU; they have now to do it alone and too quickly.

The window of opportunity is closing fast, and the chance for Mercosur South America to use the EU as a counterbalance in trading policy and practice against the USA and other blocs is already lost.

Oh, how South America continues to be its own worst enemy!
Aug 13th, 2013 - 04:58 am 0

Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!