Mercosur and the European Union failed to sign the much-expected and long-awaited free trade and cooperation agreement during the South American block summit in Rio do Janeiro, mainly because of discrepancies over forestry and agricultural land. Brazilian President Lula da Silva said he was committed to signing the agreement with the EU, and will not give up until achieved but further hurdles could be in the way.
The European Union's Commissioner who was due to attend the Dec. 7 Mercosur Summit in Rio de Janeiro to sign the trade agreement between both blocs has canceled his trip, it was reported Sunday. According to the Financial Times, Valdis Dombrovskis shall not be attending the event, which in addition to announcements in Buenos Aires and Brasilia coupled with further negative statements from French President Emmanuel Macron, would amount to the end. at least for now, of the much-heralded agreement.
Spanish Prime Minister Pedro Sánchez held a telephone conversation this week with Paraguayan President Santiago Peña during which he insisted on his country's commitment to finalizing the trade deal between the European Union and Mercosur while he held the rotating presidency of the northern alliance. The deal would unite 800 million people and represent a quarter of the world's Gross Domestic Product (GDP). If things go on as projected, Mercosur would obtain duty-free access for 93% of its exports to the EU, with a 10-year deadline to achieve this goal.
The European Parliament negotiators agreed on Thursday the EU Nature Restoration Bill which requires member countries to restore 20% of EU land and sea habitats by 2030, a bill that has already triggered spontaneous protests from the farming community in several EU countries.
After Bolivia severed diplomatic ties with Israel in the aftermath of the ongoing crisis in the Middle East, Spain’s Social Rights Minister Ione Belarra said Wednesday that her country and the rest of the world should follow suit due to Prime Minister Benjamin Netanyahu’s ”planned genocide” against the people of Palestine.
Brazilian President Luiz Inácio Lula da Silva told Spanish Prime Minister Pedro Sánchez during a telephone conversation last week that he was keen on finalizing the trade agreement between the European Union (EU) and Mercosur.
The government of Lula da Silva estimates that the new European Union, EU, anti-deforestation law will have a 34% impact on Brazilian exports to Europe and 15% on the country’s total exports. Folha de Sao Paulo informed the measure applies to products in the supply chains of coffee, soy, palm oil, wood, leather, beef, cocoa, and rubber.
The European Commission has urged Member States to immediately repeal any existing investor citizenship schemes and to ensure strong checks are in place to address the risks posed by investor residence schemes. The Commission has frequently and consistently raised its serious concerns about investor citizenship and residence schemes and the inherent risks they pose. The latest recommendation forms part of the Commission's broader policy to take determined action on these schemes. The current context of the Russian aggression against Ukraine is once again highlighting these risks.
The European Union has warned Mark Zuckerberg over the spread of “disinformation” on Meta's social media platforms after Hamas' attack on Israel. It told Meta, which owns Facebook and Instagram, that it “has 24 hours” to respond and comply with European law.
The European Union has been proactive in pressuring its trading partners to adhere to its domestic greenhouse gas emissions reduction goals, primarily rooted in protectionism. First, with the imposition of the Deforestation Law last June. Now, with the adoption of the Carbon Border Adjustment Mechanism (Cbam), Brussels subjects imports of seven inputs to surcharges of 20% to 35% if production exceeds its environmental limits. Brazil is among the top ten potentially most affected exporters, especially in the iron and steel sectors.