The Mercosur foreign ministers -Argentina, Brazil, Uruguay and Paraguay- met this Monday, July 3, in Iguazú, Argentina, on the eve of the bloc’s biannual summit, which will bring together the heads of state of the four countries. There they discussed the clauses of the trade agreement between the organization and the European Union, reached in 2019, but not yet formalized. Uruguay is increasingly dissatisfied with the organization, criticizing its “inactivity.”
First modification:
This Monday, the four Mercosur foreign ministers participated in a session prior to the organization’s official summit, scheduled for this Tuesday in the Argentine city of Puerto Iguazú. The ministers of Argentina, Brazil, Paraguay and Uruguay, which make up the organization, as well as Bolivia, in the process of full adhesion, attended.
The discussions this Monday were led by Argentine Foreign Minister Santiago Cafiero and tomorrow President Alberto Fernández will do the same, who occupies the protempore Presidency of Mercosur until Tuesday, when the baton will be declared by the Brazilian Luiz Inácio Lula da Silva.
One of the key points of these talks was the state of trade negotiations with the European Union. The free trade agreement reached in 2019 has not yet been finalized and there are several disagreements between both parties.
According to Argentina, the agreement with the EU must be updated to “reduce the gaps” between the two blocs, as expressed by its foreign minister Santiago Cafiero.
This Monday, the Argentine minister denounced the “partial vision” of the EU with “little consideration of the economic and social development” of the Mercosur countries.
“Twenty-five of the 27 EU countries have a higher human development index than any country in our bloc,” he declared.
The countries of the South American bloc denounce an asymmetric agreement between both parties that no longer reflects the current situation on the continent. “We trade above what was agreed in 2019” so, with these criteria, now “we would have to reduce our exports,” explained Cafiero, for example.
Mercosur criticizes in particular the new European environmental demands related to the agricultural sector that the EU established last February and to which the South American countries must respond with a counterproposal.
Brazilian President Luiz Inácio Lula da Silva described this new green protocol as “unacceptable” and “threat” on a recent trip to France. Lula also expressed the need to renegotiate the agreement.
“The agreement can be an effective vehicle to reposition Mercosur on the global map,” but for this “it is necessary to work and update the 2019 texts,” said Lula, president of the main regional economy.
Close to crafting a counterproposal
According to the Secretary of International Economic Relations of Argentina, Cecilia Todesca Bocco, interviewed by the EFE news agency, the Mercosur countries are “in tune” regarding these negotiations with the EU and could establish a counter-proposal to the EU shortly.
“We are close and there is harmony, but we have to be patient because the different political cycles of the countries mean that some of us have been working for a few years and others have just assumed the presidency and need to review the documents,” Todesca said.
For example, Brazil, which will assume the Presidency on Tuesday, asked for more time to think about the details of the negotiation.
“The EU spent almost three years to present its environmental proposal and here we are talking about four months that Mercosur has taken over. So we have to be a little more patient, but we are close,” Todesca reaffirmed.
The countries of the block will present a proposal taking into account environmental and economic issues.
“We are waiting for the responses of all the countries regarding three points. One is the environmental issue regarding the letter presented by the EU (…) Then there are the issues related to cooperation to help Mercosur SMEs to integrate into the European market and also to incorporate technologies with less impact on the environment. And, finally, how to strengthen the value chains between Mercosur and the EU with the idea of locating investments and generating jobs in Mercosur,” Todesca explained to EFE. .
Uruguay criticizes the “inactivity” of Mercosur
Uruguay was very critical of the organization, denouncing the “inactivity” of Mercosur. The Uruguayan foreign minister, Francisco Bustillo, said that it should be called “Zocosur” because it is a “common area of the south.”
According to the minister, Mercosur “has not been able to consolidate internal policies that allow for a substantial increase in trade ties between partners.”
Bustillo denounced that the organization is on the sidelines of major international negotiations and has no agreements with “none of the ten main economic and commercial powers in the world.” He also hurt the duration of the negotiations with the EU.
The Uruguayan foreign minister asked for a dialogue with China and reported that Uruguay “has advanced and completed a joint feasibility study” for a unilateral free trade agreement with China, something that the organization does not allow.
The presidents of the four Mercosur countries are expected to reach more agreements this Tuesday in Argentina, in the organization’s first face-to-face summit since 2019.
with EFE
