Berliner Boersenzeitung - Fate of major trade deal with EU hangs over Mercosur summit

EUR -
AED 4.119836
AFN 72.353425
ALL 90.796811
AMD 404.49661
ANG 2.007791
AOA 1029.817759
ARS 1733.905407
AUD 1.623323
AWG 2.022055
AZN 1.906177
BAM 1.955784
BBD 2.253581
BDT 138.968835
BGN 1.960727
BHD 0.422496
BIF 3354.486834
BMD 1.121806
BND 1.432094
BOB 13.297651
BRL 6.200257
BSD 1.118891
BTN 105.01712
BWP 15.373391
BYN 3.350272
BYR 21987.389703
BZD 2.250381
CAD 1.584865
CDF 2570.056989
CHF 0.920662
CLF 0.027626
CLP 1087.264975
CNY 7.485583
CNH 7.480351
COP 3677.469454
CRC 506.795752
CUC 1.121806
CUP 26.853775
CVE 110.26211
CZK 24.335834
DJF 199.24833
DKK 7.475432
DOP 68.079429
DZD 152.877321
EGP 59.803351
ERN 16.827084
ETB 180.778551
FJD 2.527203
FKP 0.835919
GBP 0.835526
GEL 2.905454
GGP 0.835919
GHS 13.074657
GIP 0.835919
GMD 83.013474
GNF 9912.961093
GTQ 8.549928
GYD 234.563852
HKD 8.800088
HNL 30.072212
HRK 7.593513
HTG 146.658771
HUF 363.068457
IDR 20284.488806
ILS 3.546515
IMP 0.835919
INR 104.935435
IQD 1699.53548
IRR 2133994.524707
ISK 137.208377
JEP 0.835919
JMD 177.74851
JOD 0.795313
JPY 177.506683
KES 145.744578
KGS 98.101677
KHR 4565.961728
KMF 492.472709
KPW 1009.624994
KRW 1501.705015
KWD 0.348724
KYD 0.932492
KZT 502.005792
LAK 25240.625742
LBP 100198.860137
LKR 372.036882
LRD 190.218406
LSL 18.476074
LTL 3.3124
LVL 0.678569
LYD 7.18994
MAD 10.931613
MDL 20.168831
MGA 5154.696566
MKD 61.537079
MMK 2355.45131
MNT 4040.126843
MOP 9.037024
MRU 45.417619
MUR 52.635648
MVR 17.287255
MWK 1940.183737
MXN 20.757946
MYR 4.550492
MZN 71.694922
NAD 18.476467
NGN 1511.117004
NIO 41.080517
NOK 10.591371
NPR 168.024596
NZD 1.992282
OMR 0.431334
PAB 1.118991
PEN 3.850168
PGK 5.036348
PHP 70.539693
PKR 310.28975
PLN 4.389853
PYG 6993.941377
QAR 4.090166
RON 5.344054
RSD 117.600026
RUB 92.829783
RWF 1655.386125
SAR 4.218456
SBD 9.083595
SCR 15.499005
SDG 674.769145
SEK 10.979891
SGD 1.433987
SHP 0.834708
SLE 25.745278
SLL 23523.707401
SOS 639.49464
SRD 42.12607
STD 23219.110943
STN 24.499795
SVC 9.790918
SYP 14585.71602
SZL 18.394354
THB 37.532806
TJS 10.271614
TMT 3.937538
TND 3.373835
TOP 2.701038
TRY 56.35092
TTD 7.588936
TWD 36.944982
TZS 2965.070174
UAH 50.972382
UGX 4581.879907
USD 1.121806
UYU 45.119622
UZS 13421.887498
VES 1006.461826
VND 28718.223285
VUV 134.617914
WST 3.118735
XAF 655.957
XAG 0.021385
XAU 0.000275121943
XCD 3.031736
XCG 2.016583
XDR 0.793175
XOF 655.957
XPF 119.331742
YER 265.316891
ZAR 18.390135
ZMK 10097.597076
ZMW 22.741809
ZWL 361.220945
SSP 6445.686929
MXV 2.332964
  • CMSD

    -0.1200

    19.81

    -0.61%

  • JRI

    0.0000

    10.77

    0%

  • BCC

    -1.8200

    74.15

    -2.45%

  • CMSC

    -0.2228

    19.53

    -1.14%

  • BCE

    0.2000

    20.34

    +0.98%

  • RIO

    0.0100

    94.17

    +0.01%

  • AZN

    -2.7400

    161.47

    -1.7%

  • GSK

    -1.1800

    48.17

    -2.45%

  • RBGPF

    0.0000

    65

    0%

  • NGG

    0.8800

    75.82

    +1.16%

  • RYCEF

    -0.7300

    19.08

    -3.83%

  • BTI

    -0.4500

    54.4

    -0.83%

  • BP

    0.4700

    43.99

    +1.07%

  • RELX

    -0.0600

    33.18

    -0.18%

  • VOD

    -0.1800

    16.15

    -1.11%

Fate of major trade deal with EU hangs over Mercosur summit
Fate of major trade deal with EU hangs over Mercosur summit / Photo: Luis ROBAYO - AFP

Fate of major trade deal with EU hangs over Mercosur summit

The fate of a landmark trade deal with the European Union, which France is trying to block, looms large over a summit this week of South America's Mercosur bloc.

Text size:

Brussels in December struck a deal with Mercosur's founding members -- Argentina, Brazil, Paraguay and Uruguay -- which would allow the EU to sell more vehicles, machines and pharmaceuticals to South America in return for allowing in more meat, sugar, rice and soybeans from the region.

The agreement has been 25 years in the making, but still needs to be ratified by EU member states and the EU parliament.

It has faced stiff opposition from France, where farmers worry about being undercut by less-regulated Latin American peers, while enjoying backing from Germany, Spain and Portugal, among others.

"Today, the ball is in Europe's court," Ariel Gonzalez Levaggi, director of the Center for International Studies at the Pontifical Catholic University of Argentina, told AFP.

But "there isn't much willingness on the part of Brussels to move forward, mainly because of the French resistance," he added.

EU and South American backers of the deal had hoped Trump's tariffs blitz could breathe new life into a deal that would give exporters on either side of the Atlantic new outlets for their products in the event of punishing US duties.

For Florencia Rubiolo, a researcher at Conicet, Argentina's scientific and technical research council, it's "of strategic interest for all Mercosur members, both individually, and as a bloc, to see this deal be ratified."

Among other things, she argued, it would show Argentina's libertarian President Javier Milei that there is value in being part of the group, after his government has railed against Mercosur's constraints on members striking solo trade deals.

Milei is gunning for a free trade deal with the United States, and he has suggested he could walk away from Mercosur if necessary to clinch an agreement with Washington.

- 'Lowest ebb' -

The biannual Mercosur summit comes at a low point in relations between Brazil and Argentina, South America's biggest and second-biggest economies respectively.

Milei, a huge fan of US President Donald Trump, has made no secret of his disdain for veteran leftist Lula, referring to him in the past as "corrupt" and a "Communist."

Lula has accused the Argentine of talking "nonsense."

The contempt between the two was plain to see when Lula hosted Milei at a G20 summit in Rio de Janeiro last November.

The tensions could be exacerbated if Lula uses his trip to Buenos Aires to visit left-wing ex-president Cristina Kirchner, who is serving a six-year sentence for fraud under house arrest.

Kirchner on Tuesday requested permission for Lula to pay her a solidarity visit, in a move likely to anger her arch-nemesis Milei.

It was not clear, however, whether Lula would risk upsetting his Argentine counterpart at home.

"We may be experiencing the worst period in relations between Brazil and Argentina, in terms of political convergence," Juliana Peixoto, an expert in international relations at the Latin American Faculty of Social Sciences, told AFP.

She said she nonetheless expected Mercosur, which also includes Bolivia, to endure the tensions.

"It has a small but stable core of trade and has other related agendas that allow it to survive," she said.

(F.Schuster--BBZ)