The Ministry of Foreign Affairs of Brazil has stated that Mercosur's response to the European Union's awaited amendments to their trade agreement has been transmitted to Brussels, and negotiators will meet via video conference, as reported by ESMagazine.

Unlocking the Discussions

Divisions within the South American trade bloc Mercosur have weakened European hopes for the trade agreement reached in 2019 after two decades of negotiations but suspended due to environmental concerns.

Brazil currently holds the pro tempore presidency of Mercosur. "Mercosur's response to the EU has been sent," said a spokesperson for the Ministry of Foreign Affairs.

"Today, there is a video conference between Mercosur and the EU to advance the discussion, which has been the subject of frequent meetings between negotiators," he added.

Two European diplomats have confirmed this.

Environmental Guarantees

Earlier this year, the EU presented Mercosur with an addendum to the agreement that included environmental guarantees to address the reservations of many EU member states.

Diplomats fear that the agreement, which would represent the largest trade deal ever struck by the EU in terms of population, could collapse if not finalized by the end of the year.

EU negotiators have been waiting for Mercosur's response since March. Many had hoped for a swift conclusion to the deal under President Luiz Inacio Lula da Silva, who revised Brazil's environmental policies to protect the Amazon rainforest after taking office this year.

In June 2019, the European Union and the Mercosur nations - Argentina, Brazil, Paraguay, and Uruguay - reached a political agreement on a deal aimed at boosting bilateral trade and investment between the two blocs, reducing or eliminating tariffs, improving investment conditions on both sides, and promoting common values such as sustainable development and environmental protection.