Fate of major trade deal with EU hangs over Mercosur summit

THE fate of a landmark trade deal with the EU, which France is trying to block, looms large over a summit this week of South America’s Mercosur bloc.

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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 Centre for International Studies at the Pontifical Catholic University of Argentina, said.

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