Mercosur and EU signal an end to impasses and pact could be announced tomorrow

As Facto News revealed in the early hours of Wednesday, the decision by the president of the European Commission, Ursula von der Leyen, to go to Uruguay was interpreted by negotiators as a sign that the Europeans were willing to end the last obstacles. She had warned that she would only embark if there was a real chance of an agreement.

Through the pact, Brazil managed to eliminate tariffs on goods such as ethanol, sugar and meat on the European market, even though it had to respect a modest quota. On the European side, the pact allows greater access to Mercosur for its industrial goods and automobiles – a German ambition – as well as specific items such as wine and investment facilities.

After tough negotiations, Brazil still managed to preserve strategic areas for its reindustrialization project, such as the medicine sector, health and the preservation of small and medium-sized companies. In the field of public tenders, the agreement provides a certain protection for the national industry in these social segments.

One of the concerns was that public purchases from the SUS would not be taken over by Europeans, affecting the trade balance.

Resistance to ratification

For the text to come into force, however, negotiators admit that the process could take months or even years. The biggest difficulty is guaranteeing a majority of the Council of Europe, with its 27 members. After this stage, the agreement still needs to be approved by the European Parliament.