European businesses have called on the European Union to speed up trade negotiations with Mercosur, a sign of concern that talks that have spanned two decades could stall again if the sides fail to reach a deal next week.
In a letter, the head of the industrial sector "BusinessEurope", Pierre Gattaz, urged the President of the European Commission, Jean-Claude Juncker, close a deal before the campaign for the presidential elections in Brazil begins.
"BusinessEurope is increasingly concerned that we may miss the opportunity to conclude negotiations for what would be a ground-breaking trade agreement," they said in the letter. "In the many years of the negotiation process, we have never felt so close to the goal as in recent weeks. We hope that the final step will be taken soon."
The letter highlights efforts by businesses and lawmakers to keep alive a multilateral free trade agreement agenda at a time when the United States is embracing protectionism, escalating trade tensions with its allies and China.
A group of Mercosur ministers will travel next week, hoping to close a deal.
If talks fail next week, there would be no clear timetable for reopening the window, one source told Reuters, as the Brazilian vote is followed by European Parliament elections in 2019.
key themes
Trade talks between the EU and Mercosur have accelerated over the past two years, but consensus on key issues has yet to be reached.
Mercosur has resisted a European proposal for a 98 euro ($115) per tonne tariff on imports of sugar and a quota for imports of ethanol which, they argue, is too small.
In turn, the EU has yet to decide on Mercosur's offer to halve tariffs on cars imported before gradually reducing them over a transition period of up to 15 years.
There are also disagreements in areas such as beef of Mercosur and the products dairy European, as well as regulations on pintellectual property and rules of origin for various products.
Source: Reuters
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