EU says Mercosur deal 'not quite there' but talks continue

A massive and long-negotiated EU-South America trade deal is "not quite there yet" but talks continue, the European Commission said Tuesday against a backdrop of farmer protests in Europe.

"The EU is continuing its objective of trying to reach an agreement which complies with our objectives when it comes to sustainability and which also takes into account our concerns when it comes to the agricultural sector," commission spokesman Eric Mamer told journalists.

Farmers in several EU countries – including in agricultural powerhouse France and in Belgium – have been causing roadblocks on key highways to demand better revenues and conditions.

While the farmers are angry over a list of issues, many have singled out the Mercosur deal, fearing it would further depress their produce prices and increase competition from South American agricultural exporters.

The contours of a deal with the four founding Mercosur countries – Brazil, Argentina, Paraguay and Uruguay – were agreed in 2019 after almost two decades of talks, but a final version still needs to be ratified.

The French government has expressed criticism about the Mercosur deal.

French officials said President Emmanuel Macron would discuss the issue on Thursday with European Commission President Ursula von der Leyen, on the sidelines of an EU summit being held in Brussels.

Officials in Macron's office said EU negotiations on Mercosur had been suspended because of Paris' opposition.

Mamer said "exchanges" had already taken place between Macron and von der Leyen but he would not immediately confirm a meeting Thursday between the two.

The spokesman added that negotiations are "being continued" on the Mercosur deal.

"We are in touch with our partners in the Mercosur, and that is ongoing in terms of the negotiations for the trade agreements," he said, adding that the trade accord "is a European Commission priority."

– TIMES/AFP