He agreement between Mercosur and the EU has a long history of negotiations, but it finally seemed that both blocs were beginning to reach a common ground—although the environmental provisions incorporated by Europe still generate disagreements in the south of the continent, especially in Brazil. However, with the recent statements of President Peña, a new chapter opens in which the “discoordination” can be worrying.
This is how the government led by the president understands it. Luis Lacalle Pou and, in terms of international relations, by the minister of Foreign Relations, Francisco Bustillo; who were not aware of the Paraguayan president’s ultimatum until he issued it publicly, according to El País.
The position is not, in itself, new—since the Brazilian government itself, headed by Lula da Silva, had advanced the possibility of beginning to explore other alternatives before the difficulties that continued to arise in the conversations with the European bloc—; but he was taken by surprise by the untimely manner of the statement, as well as the lack of prior discussion at the level of presidents of the Mercosur or their chancellors – or, at least, with Uruguay.
In short, the message was disconcerting because it was “strange”, and it was even a topic addressed in yesterday’s session of the Permanent Representation Commission of Mercosurwhose pro tempore presidency is held by Uruguay. In this context, the Paraguayan representative assured that Peña’s words were a strategic move aimed at “activating” the European leaders, while he understands that the talks are stalled due to a lack of “political will” on the part of those.
What did the president of Paraguay say about the agreement?
The president of ParaguaySantiago Peña, assured Financial Times that, if an agreement is not made official before December 6, Mercosur will withdraw from the negotiations with the European Union and will begin to negotiate another Free Trade Agreement (FTA) with Asian nations.
“If there is someone who can close the agreement it is Lula (Da Silva). It will be this year or it will not be, it will never happen,” said Peña in reference to the trade agreement. “Or we close before December 6 or we don’t close,” he said bluntly.
Although Lacalle Pou had shared, to a certain extent, a less than optimistic position regarding the closing of the agreement – as well as he had complained about the more than 25 years that the negotiation has taken -, since Uruguay they hope that the Mercosur-EU agreement can be closed, not only because of the economic benefits it would represent for the country directly; but also because, until it is closed, Brazil will not intervene in the conversations with China, country that has already decided to pause for an indefinite period the bilateral agreement with Uruguay to pursue an agreement with the South American bloc.
Meanwhile, the Mercosur sent a general response to the EU a few days ago – a “non paper” – where they expressed their willingness to “negotiate a joint instrument for trade and sustainable development”, although they completely ruled out the possibility of applying sanctions for non-compliance on climate issuesemphasizing the cooperative nature they seek in the agreement.
For the regional bloc, “the Parties have to avoid the use of measures that imply a unjustified or unnecessary barrier to trade”.
Now, Europe will have to respond not only to the regional bloc’s document, but also to President Peña’s ultimatum.
Source: Ambito
