MercoPress. South Atlantic News Agency

Mercosur challenges EU's environmental demands in FTA; Uruguay goes rogue again

“It is imperative that Mercosur presents a rapid and forceful response” to the EU, Lula said

Argentina Tuesday handed over the Pro Tempore Presidency of Mercosur to Brazil and Uruguay refused to sign the joint declaration after the bloc's 62nd Summit in the Argentine city of Puerto Iguazú in the northeastern province of Misiones.

“It is an honor to hand over the Pro Tempore Presidency of Mercosur to a friend, Luiz Inácio da Silva,” said Argentina's Alberto Fernández. “I know that you will lead with conviction and lucidity. Your challenges are our challenges. Your decisions are our decisions. And I will accompany you in this next semester,” he added. However, by the end of the semester, he will no longer be President.

“I will dedicate myself to deal with the main social demands and divergences we have because there is no possibility of moving forward if we are not united,” Lula argued.

“We need to finalize an effective Mercosur agreement with the European Union, trying to establish the best possible relationship, in addition to seeking other agreements,” he added.

“The presidents renewed Mercosur's commitment to strengthening democracy, the rule of law, and respect for human rights, and highlighted the importance of the economic, commercial, social, and cultural agenda of the bloc for the benefit of its citizens,” reads the final document signed by Fernández, Da Silva and Abdo Benítez.

The three leaders were also critical of Uruguay's “unilateralism” in negotiations with other blocs or nations. “Uruguay has a view that has been held for some time by President Lacalle, who persists in the idea that Mercosur partners can negotiate autonomously with Mercosur, and in some way expresses that difference by not signing the decision, but it is a decision that we are aware of,” Fernández said during a press conference.

“During the meeting, the Presidents renewed Mercosur's commitment to strengthening democracy, the rule of law, and respect for human rights, and highlighted the importance of the economic, commercial, social, and cultural agenda of the bloc for the benefit of its citizens,” reads the final document signed by Fernández, Lula and Abdo Benítez, who agreed on “the need to open a space for political reflection on the modernization of the bloc, including the strengthening of the internal agenda for a greater integration of their economies, as well as the strategy for international insertion, on a consensual and solidary basis to face the challenges of a world scenario in transformation, affected by significant alterations in the map of production and employment, with visible effects on the reconfiguration of global value chains.”

Uruguay's dissent is not new. The country did not sign the final document of the previous summit in Montevideo and has long insisted on more flexibility within Mercosur so that each member may conclude trade agreements without the rest of the bloc approving of it.

Fernández once again stressed the need for the group to “integrate into the world not only as suppliers of raw materials but also as exporters of processed products” and pointed out that the FTA (Free Trade Agreement) with the EU must be a fair deal for all parties: “Nobody can condemn us to be the suppliers of raw materials that others industrialize and then sell to us at exorbitant prices. A vision that does not realize the dimension of what I am saying here could lead some to think that in this way we will not reach the free trade standards that some partners are seeking,” he said.

”The presentation of new demands in environmental matters (...) presents a partial vision of sustainable development, focused on the environmental, with no record of the three dimensions of sustainability,“ Fernández added.

Meanwhile, Lula pledged to ”conclude“ the negotiations but asked the other leaders for a ”rapid and forceful response“ to the ”unacceptable“ environmental demands presented by Brussels in March, which he described as ”threats.“

”Strategic partners do not negotiate on the basis of mistrust and the threat of sanctions. It is imperative that Mercosur presents a rapid and forceful response,“ Lula underlined while defending the ”adoption of a common currency for clearing operations“ between Mercosur countries, which ”will contribute to reducing costs and will further facilitate convergence.“

Lacalle Pou argued that his country's ”unilateral“ moves were ”not capricious.“

”The world keeps changing. New needs and opportunities are generated (...). Our region is changing and has a unique opportunity not only because of raw materials but also because of the intelligence of our people,” said the president of Uruguay.