Brazil hopes for conclusion to EU-Mercosur trade deal this year

On Sunday, a senior official said Brazil hopes to finalize the Mercosur trade treaty with the EU this year, ending years of delay and opening the door to more trade.

The EU and Mercosur—Argentina, Brazil, Paraguay, and Uruguay—completed discussions in 2019, but France’s concerns over Amazon deforestation and Brazil’s climate change commitment have stalled the pact.

Brazil’s climate policy will be overhauled by President Luiz Inacio Lula da Silva.

Germany wants a quick resolution, but France wants Brazil to make progress.

Marcio Elias Rosa, Brazil’s development and industry ministry’s chief secretary, said negotiations with the EU were ongoing and countries were debating the bloc’s “socio-environmental requirements” in Lisbon.

“The signs are very positive,” Elias Rosa remarked. “Details are missing but I believe we will close the deal and the agreement will be good.”

Elias Rosa said all Mercosur nations wanted to complete the pact but needed to agree on specific parameters.

“Brazil already complies with the socio-environmental requirements related to labour legislation,” Elias Rosa stated. “Others must agree, but we’re near.

“We’ll close this year.”

Elias Rosa said Portugal and Spain, which will lead the EU Council in the second half of 2023, “important allies” in negotiations.

Elias Rosa is in Portugal with other government officials for Lula’s five-day European visit, his first since becoming president.