BCN-14,15 Brazil minister expresses frustration with EU side in Mercosur trade talks

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Brazil minister expresses frustration with EU side in Mercosur trade talks

BRASILIA, Aug 31, 2018 (BSS/AFP) – Brazil’s Foreign Minister Aloysio Nunes
says he expects more “movement” from the European Union as long running talks
on a free trade deal with his South American bloc Mercosur head into the home
stretch.

“We expect a little more, some movement beyond what the European Union has
offered up to now, especially in the agricultural goods sector, market
access,” Nunes said in an interview with AFP.

Nunes was speaking ahead of a new round of talks in Montevideo in
September at which both sides are hoping to finally push the talks — which
have been going on for almost 20 years — over the line.

With an historic agreement edging closer, EU farmers have expressed fears
over an influx of South American beef.

Meanwhile, the four Mercosur countries — Brazil, Argentina, Uruguay and
Paraguay — are similarly nervous about opening up their markets to European
carmakers.

“On Mercosur’s part, there is total disposition,” insisted the Brazilian
minister.

“We have made progress in this negotiation, bringing us very close to the
interests expressed by the European Union.”

“On the European Union side, we have not seen the advances that we
expected in some areas of great interest to Mercosur, especially in the
agricultural sector,” he said.

– ‘Very limited’ EU quota –

The Mercosur countries are all food exporters but have run up against
powerful European Agro-industry interests as well as concerns expressed by
environmentalists.

The sides had been expected to wrap up the talks in December but failed in
part because Mercosur rejected an EU beef quota offer as too low.

“The quota that was offered to us is a very limited quota — in meat
99,000 tons, and in sugar, 150,000 tons. We don’t want tariffs applied within
this quota, because if so, it will be as if the quota did not exist.”
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European Trade Commissioner Cecilia Malmstrom and Agriculture Commissioner
Phil Hogan are expected to attend the talks in Montevideo.

The Brazilian minister, who is heading the Mercosur negotiating team,
expressed hopes of a breakthrough.

“We hope that this agreement can be realized given the importance that it
has, both in Mercosur and in the European Union, and I would say even more so
for the international environment, because it would be an agreement that
would affirm the principles of exchange and international trade, that goes
against the current of protectionism gaining ground in many European
countries.”

Mercosur began negotiating a free trade agreement with the EU in 1999. The
talks regained momentum when President Donald Trump arrived in the White
House in 2017.

– A new UNASUR –

The foreign minister also positioned himself on the future of the Union of
South American Nations (UNASUR) after Colombia announced its withdrawal over
the involvement of Venezuela.

“We are in favor of maintaining UNASUR with a new format, more focused,
de-ideologized and with more effective management and decision-making,” he
said.

Brazil, along with Colombia, Chile, Peru and Paraguay, decided in April to
suspend participation in UNASUR until the appointment of a new secretary
general to replace Colombian Ernesto Samper, who left office in January 2017.

The regional bloc was founded in 2008, promoted by then-presidents Luiz
Inacio Lula da Silva of Brazil and Hugo Chavez of Venezuela.

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