Scholz and Milei, in favor of the rapid conclusion of the EU-Mercosur trade agreement

Negotiations on the trade agreement between the European Union (EU) and Mercosur “must be concluded quickly”, said German Chancellor Olaf Scholz and Argentine President Javier Milei during a telephone conversation, according to a statement from the German government.

Signed in 2019, after twenty years of complex negotiations, the free trade agreement between Mercosur (Brazil, Argentina, Paraguay, Uruguay) and the European Union was never finalized, mainly due to reticence regarding Brazil's environmental policy. during the government of Jair Bolsonaro.

The tone changed favorably after the return of Luiz Inácio Lula to the Presidency, who promised to combat deforestation, although new conditions presented by the EU on environmental issues have generated divergences.

In a brief statement released this Tuesday afternoon (9), the German government reported a phone call between Scholz and the new Argentine president, the ultra-liberal Javier Milei.

“They talked about bilateral and multilateral issues, but also about the trade agreement between Mercosur and the European Union”, reported the German government.

“They agreed on the fact that negotiations on the free trade agreement must be concluded quickly,” he added.

On December 7, 2023, during a summit of Mercosur heads of state in Rio de Janeiro, the South American bloc and the European Union said they wanted to “quickly” conclude the bilateral trade agreement.

Host of the meeting, President Luiz Inácio Lula da Silva wanted to close this agreement before Brazil transferred the rotating presidency of Mercosur to Paraguay.

Initially, Brasília hoped to announce an outcome as a result of the meeting, but disagreements persisted and the agreement ended up not being finalized.

Another factor that contributed greatly to delaying the end of the negotiations was the election, in Argentina, of Javier Milei, who had not yet taken office.

Germany is one of the biggest supporters of this free trade agreement within the European Union, as the treaty is considered indispensable for its powerful industrial sector.