BRAZIL: FRANCE-Lula & Macron Hold Call Amid EU-Mercosur FTA Delay
Aug-20 14:35
French President Emmanuel Macron has held an hour-long phone call with his Brazilian counterpart Luiz Inacio Lula da Silva, with topics of conversation including the US' tariff regime, the prospective EU-Mercosur trade deal, and the situation in Ukraine, according to a Brazilian gov't readout.
- Relations between Paris and Brasilia remain strained as France continues to push for a reopening of the EU-Mercosur trade agreement, finalised in Dec 2024. The statement says the two leaders, "committed to finalizing the dialogue with a view to signing the MERCOSUR-European Union Agreement this semester, during Brazil's presidency of the bloc."
- The EU has yet to send the agreement to member states for ratification, with focus throughout the summer on reaching a deal with the US. However, the French gov't is seen as a major obstacle to its final approval and enactment.
- Valor International reported in late July, "According to some observers in Europe, France will never be satisfied with the Mercosur deal. Previously, it demanded guarantees around compliance with the Paris Agreement. Now it is pushing for a new agricultural safeguard. If that were granted, Paris would likely raise another issue. In practice, the French government is always seeking more time. The problem in France is purely a domestic political issue. Behind closed doors, parts of the French government acknowledge that the Mercosur deal is beneficial—especially amid the current geopolitical turbulence. But Macron took a hard line in opposing the agreement and now faces difficulty in walking that back."
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