Brazilian diplomats told the CNN that the Brazilian government is already considering it unlikely that this year it will make significant progress in terms of the trade agreement involving the economic blocs of Mercosur and the European Union.
In addition to technical bottlenecks, which still need to be resolved, Itamaraty sources point to the CNN the Brazilian elections and the economic crisis in Argentina as factors that make negotiations difficult.
The assessment is that only a definition of the next President of the Planalto Palace and a reduction of the instability in Argentina will allow the return of negotiations.
The Brazilian government has never failed to maintain contact with the European bloc with a view to reaching an agreement, but the pace of negotiations has slowed down in recent months, given the political and economic uncertainties in Mercosur.
In addition to the geopolitical scenario and regional instability, there are at least three stages of a technical nature that need to be overcome for the trade agreement to become viable.
The first refers to proof by agricultural producers of the right to exploit the so-called geographical indications, that is, names of products associated with a region, such as cheese and beverages, for example.
The second obstacle refers to addenda that must be included in the final text by the European Union concerning environmental issues. The terms, however, have not yet been informed to Mercosur and must undergo a new round of negotiations.
And the last step is the process of legal review of the final text, an effort that is often time-consuming since the terms of the agreement cannot go against regional legislation.
The agreement between Mercosur and the European Union would involve the immediate or gradual reduction of import tariffs, with the potential to make both agricultural and industrial products cheaper for the consumer market.
The negotiation has dragged on for more than twenty years and, if successful, the promise is that it will be the biggest free trade agreement in history.
THE CNN contacted the Ministries of Economy and Foreign Affairs about the progress in the negotiations and awaits a response.
Source: CNN Brasil
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