Soon to be concluded?

Insider: Mercosur agreement takes big steps

Beef from South America could soon be found more frequently in domestic supermarkets.(Bild: AFP/Luis ROBAYO)

According to insiders, the EU and South American negotiators have made "significant progress" on contentious issues during the trade talks. This could mean a breakthrough for the controversial EU-Mercosur agreement in particular.

"The round of negotiations went very well. There was significant progress in the areas of the environment and public procurement," said a person from the Brazilian Foreign Ministry.

"There should be a new round of negotiations in a few weeks," the official added. The insiders indicated that the negotiations were still pointing to a positive conclusion before the end of the year.

Negotiations over decades
Eleven EU governments have also written to European Commission President Ursula von der Leyen this week calling for a swift agreement on the Mercosur trade deal, which has been under negotiation for 25 years.

"It is now urgent to secure the progress made so far and conclude the negotiations," the letter seen by Reuters stated. "We are convinced that all the conditions are in place to bring the negotiations to a swift conclusion by the end of 2024."

Environmental concerns as a stumbling block
After more than two decades of negotiations, the agreement was finalized in 2019 but put on hold by EU demands for commitments on Amazon deforestation and climate change. Local farmers are also worried about being pushed out of the market by cheap foreign goods.

The Mercosur group includes Brazil, Argentina, Paraguay, Uruguay and, most recently, Bolivia. With the agreement, the EU and South America could create the largest trade zone in the world, with more than 720 million people. The zone would cover almost 20 percent of the global economy and more than 31 percent of global goods exports.