For the first time, South American parties are speaking of a 'counterproposal,' according to reports from Brazilian and French media.
French President Emmanuel Macron proposed last month to his Brazilian counterpart Lula da Silva to amend the Mercosur agreement. Although specific changes have not been disclosed, Da Silva initially described this as a blockade and insisted on ratification.
Now South American diplomats say that the Mercosur countries need time to prepare an unspecified counterproposal.
Within the European Union, calls for adjustments to the agreement, which was agreed upon several years ago but lacks environmental provisions against deforestation in the Brazilian rainforest, are increasing.
Not only European environmental organizations are pushing for a ban on the export of agricultural and food products from South America if they originate from illegal deforestation; European agricultural organizations are also joining these calls.
If the Mercosur free trade agreement between the European Union (EU) and the Mercosur countries (Brazil, Argentina, Uruguay, and Paraguay) were to come into effect, it would have significant trade implications. For the Mercosur countries, it would mean gaining access to the European market with over 500 million consumers.
For the EU, the agreement would facilitate access to the Mercosur markets. European companies could benefit from the growing consumption and emerging markets in South America. In particular, sectors such as the automotive industry, pharmaceutical industry, machinery manufacturing, and chemical industry could benefit from reduced trade barriers.