The European Union will aim to conclude free trade talks with Mercosur by the end of the year, leaders said, despite French concerns about the surge in agricultural imports that would result from a deal.
French President Emmanuel Macron had said he was in no hurry to reach an agreement with the bloc, made up of meat exporters Argentina, Brazil, Paraguay and Uruguay. The French leader succeeded in getting the trade issue onto the agenda of a summit of EU leaders in Brussels.
“We had a short moment just after midnight to talk about international trade,” European Commission President Jean-Claude Juncker said during a press conference following the leaders’ meeting on Friday.
Juncker said Europe had a great opportunity to seal trade deals with countries around the world, respecting European values and standards and the “reciprocity that the French president seeks.”
"We will continue to do everything we can to conclude negotiations with Mercosur before the end of the year. It is important. We underestimated the importance of Mercosur for the European Union," he added. Juncker.
The European Commission says the savings the EU could achieve from lower tariffs with Mercosur would be three times greater than from deals with Canada and Japan combined.
EU exports to Mercosur, ranging from cars to pharmaceuticals, are subject to around 4,400 billion euros ($5,200 billion) in duties per year. According to a Commission source, France would be among the countries that would benefit most from lowering tariffs.
France was concerned that the Commission was rushing to reach a pact with Mercosur while trying to keep negotiations open with Australia and New Zealand, two countries that want to increase their agricultural shipments.
Source: Reuters
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