The European Union will seek to further discussions over a trade deal with Mercosur at the upcoming G20 summit in Cannes in November announced on Tuesday German Chancellor Angela Merkel alongside visiting Uruguayan president Jose Mujica.
The head of Business-Europe International Relations said Wednesday that a free trade agreement between the European Union and Mercosur “would not destroy European agriculture” in spite of fears from farmers.
Major European corporations called on political leaders for an “ambitious and balanced” European Union-Mercosur trade agreement and asked that ‘agriculture issues’ impacts do not derail the project.
European Union farmers could suffer losses ranking from one to three billion Euros if a trade agreement is finally agreed with Mercosur according to a European Commission evaluation paper on the impact.
The Mercosur-EU trade agreement is one of several issues Brazilian president Dilma Rousseff will be addressing Monday in Brussels during the fifth Brazil-EU summit. Rousseff begins in Belgium an official visit to Europe that also includes Turkey and Bulgaria.
A trade agreement between Mercosur and the European Union would significantly expand European investment given the increase in bilateral trade, but ‘there’s too much fear from both sides’, according to Adrian van den Hover head of international relations for Business Europe.
The Spanish government's enthusiasm for an European Union free-trade agreement with Mercosur remains solid and Madrid seems willing to put some sectors of agriculture at risk in exchange for access to new markets for the country's multinationals.
On request from Argentina advance on EU/Mercosur trade talks will be delayed until after next October’s presidential election, revealed the EU Trade Commissar Karel de Gucht.
Members of the European Parliament discussing the agriculture budget said that compensation for beef farmers that could face Mercosur competition, if a trade agreement is finally reached, “is not enough” and anticipated that “we will not accept sweeteners in this area”.
The European Union and Mercosur concluded Friday in Brussels the sixth round of negotiations for a cooperation and trade agreement without any formal exchange of proposals but with the commitment to continue discussions.