Because of Brazil’s controversial policy, resistance to the Mercosur trade agreement with four South American countries is growing in the EU. Portugal wants to save the treaty during its presidency.
By Matthias Reiche, ARD-Studio Brussels
The message was clear when Portugal’s Prime Minister António Costa presented the priorities of the EU Council Presidency last week: The rapid implementation of the agreement between the EU and Argentina, Brazil, Paraguay and Uruguay is high on the agenda.
“The debate about Mercosur is primarily not just an economic one. We need the agreement because it is particularly important for Europe’s geopolitics,” said Costa. After all, this would create the largest free trade area in the world.
Greens against conclusion of contract
Critics argue that the treaty will contribute to further deforestation. The same binding and enforceable sanction mechanism does not apply to the fixed obligations for environmental and climate protection as for other parts of the agreement, says Anna Cavazzini. The MEP for the Greens believes that the agreement must be buried or significant changes made.
“In addition, the European Parliament has made a very clear decision that we cannot approve the agreement without changing it,” explains Cavazzini. “We want certainty that progress will really be made to curb the deforestation, that the agreement will not contribute to the further destruction of the rainforest.”
Agreement as a means of political pressure?
Brazil must of course fulfill its contractual obligations to comply with the Paris Climate Agreement, says Vice-President of the EU Parliament Nicola Beer. The FDP politician is convinced that the EU can better prevent the overexploitation of the Amazon with the Mercosur agreement.
“Here we must insist that President Bolsonaro corrects his course,” demanded Beer. But this is exactly where the agreement is an opportunity, according to the Liberals. “If we overturn the agreement now, it would not only send a fatal signal against trade, but we would let the local design, in the direction of climate protection and human rights, come to nothing.”
“Better than nothing”
The agreement will give the EU access to a market of 260 million consumers and European companies could save up to four billion euros in tariffs each year. The EU-Mercosur agreement was negotiated for 20 years. That shouldn’t be jeopardized lightly, says Daniel Caspary, member of the trade committee and chairman of the CDU / CSU group in the EU Parliament.
“The agreement brings a lot of progress. On the other hand, there are also expectations that have unfortunately not been met,” says Caspary. In this respect, those would be right who now said that one would have wished for more. But: “I also think everyone is right to say that this agreement could be better than nothing.”
The federal government also has reservations
During the German EU Council Presidency, which had just ended, the issue was de facto put on hold. Much will now also depend on how the federal government positions itself in the future. Government spokesman Steffen Seibert recently declared that they support the idea of the EU-Mercosur agreement in principle. However, there are still major reservations.
Seibert described the extent of the deforestation and fire in the Brazilian jungle as “terrifying”, and: “It has even increased in recent times. That means that there are simply very serious questions with regard to these current developments in the Amazon.”
As a next step, the agreement will now be translated into the individual EU official languages. The ratification process can only start when all 27 member states have agreed in the EU Council, which as of today is likely to be a very difficult task.
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