In dialogue with Channel Ethe economist Martin Simonetta warned of the political and economic difficulties that today call into question the signing of the agreement between Mercosur and the European Union during Brazil’s pro tempore presidency.
“A month ago it seemed that it was already a done deal, with a bow, everything ready, the signing of the agreement would be just a formality“, he explained SimonettaEconomist when he described the climate before the summit planned in Iguazú under the pro tempore presidency of Lula da Silva.
Today that optimism has been watered down. “In recent weeks the yellow, almost red lights have been appearing. Today the topic seems really very complicated.” said the expert, noting that decisive resistance has emerged within the European bloc, particularly from France and Italy.
Divided Europe and fears about agriculture
Accordingly SimonettaAt the heart of the conflict is the internal heterogeneity of the European Union. “Within the European Union there are 27 countries with very different interests and economic profiles.“He noted that while Germany is promoting the agreement because of its interest in sectors such as the automotive industry, other countries fear the impact on their more primary economies.
France, led by Emmanuel Macron, and Italy, led by Giorgia Meloni, claim that the agreement endangers the European agricultural sector. “They say that the European agricultural sector is at risk and that Europe needs to solve other problems“Simonetta explained, also citing the conflict between Ukraine and Russia as a priority that is crowding out the trade agenda.
A historic agreement that remains on hold
On the MERCOSUR side, the consensus appeared to be more solid. “Despite internal differences, there was relative agreement” said Simonetta. However, the process was caught in an institutional limbo: “Many formal steps are missing for this agreement to be signed in 48 hours“.
The economist appealed for an expressive image to describe the current situation: “It’s like the man in church with the bouquet of roses, but the bride doesn’t come.If concluded, the agreement would have represented one of the world’s largest integrating blocs in terms of population and trade preferences.
The exit remains open for now. “It would have been historic, we’ll see what happens“, he concluded Simonettamaking it clear that the definition could be pushed beyond the Brazilian presidency.
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