Yesterday, the European Commission received a crucial proposal from Mercosur that could seal an association agreement this year.
It focuses on environmental protection.
Both sides held a virtual meeting on the same day. They discussed how to end negotiations by the end of the year.
Their presidents also made this commitment.
Earlier in the week, Ursula von der Leyen, the EC President, spoke. She said finalizing the agreement this year was a goal.
She said, “Smart trade leads to good jobs and growth.”
Mercosur needs to meet new green standards set by the EU. Not meeting these could lead to trade sanctions.
Talks between the EU and Mercosur restarted earlier this year. They aim to finalize a deal reached in 2019 after 20 years of discussions.
The new green rules made the talks harder. Argentina, Brazil, Uruguay, and Paraguay rejected these rules.
Brazil’s President, Luiz Inácio Lula da Silva, criticized the EU’s stance. He called it “green protectionism.”
Background
Mercosur, or the Southern Common Market, was founded in 1991. Its members are Brazil, Argentina, Uruguay, and Paraguay.
This bloc aims to promote free trade and fluid movement of goods among member countries.
The European Union (EU) is a similar but larger group. It has 27 member states and aims to ensure peace and stability in Europe.
Talks between the EU and Mercosur began over two decades ago. The main aim was to strengthen economic ties.
In 2019, both sides agreed to a preliminary deal.
This was seen as a significant milestone. However, many issues, including environmental concerns, have delayed a final agreement.
The EU has been putting emphasis on green policies recently. This comes as climate change becomes a global priority.
On the other hand, some Mercosur countries have faced criticism for their environmental records. Brazil, particularly, has faced scrutiny for deforestation in the Amazon.