🚀 ProPicks AI Hits +34.9% Return!Read Now

EU: conditions to complete Mercosur trade deal not met yet

Published 07/02/2024, 11:00
Updated 07/02/2024, 11:05
© Reuters. FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium, July 14, 2021. REUTERS/Yves Herman//File Photo

By Kate Abnett

STRASBOURG (Reuters) - The conditions that would allow the EU to conclude a trade agreement with the Mercosur group of South American countries have not been met, European Commission Executive Vice President Maros Sefcovic said on Wednesday, although talks continue.

The planned free trade agreement has come under political scrutiny in recent weeks, amid protests by farmers who say they are being undercut by cheap imports from countries that do not uphold the EU's strict environmental standards.

"The Commission assessment is that the conditions for the conclusion of the Mercosur agreement are not met," Sefcovic told the European Parliament on Wednesday.

A Commission spokesman told Reuters negotiations on the deal were continuing.

The European Union and the Mercosur bloc of Argentina, Brazil, Paraguay and Uruguay have been in talks for years over the accord, with the EU pushing in recent negotiations for stronger assurances on climate change and deforestation.

France has repeatedly expressed reservations about the EU-Mercosur deal and President Emmanuel Macron last week told Brussels it would be impossible to conclude negotiations under the current conditions.

© Reuters. FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium, July 14, 2021. REUTERS/Yves Herman//File Photo

With farmers staging massive protests in France and polls pointing to gains by the far right in European Parliament elections in June, Macron is under pressure to assuage farmers who are angry over rising costs and cheap food imports.

EU governments and the European Parliament need to approve any trade deal the Commission has reached.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.