The powerful manufacturers lobby, Sao Paulo’s Industry Federation, Fiesp believes a free trade agreement between Mercosur and the European Union is very much needed so that Latam’s largest economy climbs out from the “commercial isolation” in which it currently stands.
Trade talks between Mercosur and the European Union have been frozen on the “edge of the cliff” because of the European debt crisis, differences over agriculture subsidies and other crucial issues according to sources in Brazil from both sides.