Members of the bloc accepted European legislation to conclude negotiations on the trade agreement
Mercosur countries have accepted a rule that will ban the purchase of products originating in deforested areas from 2021 onwards. The rule is set out in law which should come into force from December 2025.
This was necessary to conclude negotiations on the trade agreement between the EU (European Union) and Mercosur.
The president of the EU government, Ursula von der Leyen, and the presidents of Mercosur the end of negotiations at the bloc’s 65th Summit this Friday (Dec 6, 2024) in Montevideo. The president (PT) participated in the announcement.
The anti-deforestation rule will apply to products such as cocoa, soy, coffee, meat and cellulose. Diplomats who participated in the negotiations estimate that there will be no harm to products from previously deforested areas
The agreement establishes that if there is a divergence in the application of the rule, there will be arbitration from a country or institution to be chosen by both parties.
The text to be finalized will need to be signed by both parties, which is unlikely to be done before June 2025. It will then need to be approved by the European Council and the European Parliament.
Negotiations are close to the final stage in 2019. But the agreement was not signed due to the Covid-19 pandemic. Then differences arose and discussions were resumed in 2023.
GOVERNMENT PURCHASES
Mercosur managed to get the EU to accept a new rule on government purchases. Purchases in the health sector will be outside the agreement. Bids may only be made to companies from each country.
Governments may give preference to companies from their countries in other areas. It will also be possible to demand that, if a company from another country wins a bid, it may have to commit to making the product in the country where it will be purchased.
AUTOMOTIVE INDUSTRY
In the case of the automotive industry, total trade liberalization was extended from 15 years that had been established to up to 18 years. It will also be possible to suspend the agreement if factories close due to a large increase in imports.
