Trade talks between the EU and four of South America’s largest economies have hit a fresh hurdle after Brasilia condemned Brussels’ attempts to add environmental commitments to the export deal.
The EU said last month that the four Mercosur countries — Brazil, Argentina, Uruguay and Paraguay — must commit to binding measures on deforestation reduction before the deal can be ratified.
However, a senior Brazilian diplomat told the Financial Times that his country was “not at all” happy with the nature of the request, which the EU made through a so-called side letter to appease concerns of certain member states.
“It is the same old tricks and rhetoric to try to gain leverage but it is not going to work,” the official said.
The deal took 20 years to negotiate and was finally concluded in 2019. However, its ratification has been beset by delays after EU countries, led by France, insisted on a firm commitment from Brasília to protect the Amazon before they will sign.
EU trade commissioner Valdis Dombrovskis last month hailed a “window of opportunity” to sign the deal after Luiz Inácio Lula da Silva beat Jair Bolsonaro in the presidential election in October. Lula repeatedly vowed to preserve the Amazon after Bolsonaro presided over record levels of deforestation.
“On the environment, throughout his previous tenure and from day one of his government, [Lula] has shown clear commitment to tackle problems he inherited from the previous administration,” the Brazilian official said. “They are not talking with Bolsonaro anymore. It is necessary they recognise this and tone things down.”
The request came in the form of a side letter from the European Commission, the bloc’s executive arm, sent to Mercosur members in early March.
A copy of the EU’s letter, seen by the FT, requests both sides to commit to measures contained in the Paris Climate Agreement, which require signatories to halve deforestation by 2025, as well as reverse forest loss and the misuse of land by 2030. The letter also includes an obligation to respond to “any further decisions” made by the UN with regard to the Paris agreement, and to properly resource environmental regulators.
“They are trying to turn the voluntary Paris agreements into binding commitments, which is well beyond the scope of a side letter,” the Brazilian official said. “A side letter is meant to clarify things that have been already agreed upon. It is not meant to make new commitments.”
While Brazil believes any new commitments on the environment would require renegotiating the deal, the EU is reluctant to do so — fearing it would give leverage to member states and protectionists that have long opposed the deal.
Parliaments in the Netherlands and Austria have come out against the deal, arguing more imports from South America would make EU consumers responsible for deforestation. EU farming groups oppose increased imports of beef from the region, while Mercosur governments are wary of opening up their markets to the EU’s manufactured goods.
An EU diplomat acknowledged there was opposition in several member states but was “optimistic” of reaching a deal. “Let’s not give up,” they said.
The European Commission said it was awaiting feedback from Mercosur to its proposal.
Source: Economy - ft.com
