While France wants to see a trade deal concluded between the European Union and South America’s Mercosur bloc, trade minister Olivier Becht warns against entering into it too quickly, without assurances on environmental and social concerns.
During a visit to Brazil, France's junior minister for foreign trade, Olivier Becht, told reporters that the deal, 23 years in the making, should not be concluded in haste.
EU and Mercosur bloc
The deal between the EU and the Mercosur bloc of Brazil, Argentina, Uruguay and Paraguay that was agreed in principle in 2019 would create a free-trade area of more than 750 million people.
But the ratification process has stalled among the EU members, including France, which has been concerned about Brazil's commitment to protecting the Amazon rainforest, notably during the presidency of Jair Bolsonaro, who lost re-election last year.
A French government-commissioned report found the deal would fuel an increase in South American beef production and give rise to a 25 percent rise in deforestation.
Brazil said the report was proof of France's "protectionist interests".
Unpopular deal
The deal is unpopular with farmers in France, who are concerned about the lifting of tariffs on imported beef, which is subject to lighter environmental and sanitary regulations, and therefore would cost less and undercut their profits.
The European Commission wants to conclude the deal quickly, to reduce its dependence on China and the United States.
Becht said he understands the strategic value of the deal, but that rushing it would risk running into resistance from lawmakers in EU member states who need to approve it.
Becht said Brazil is currently “engaging in a strong energy transition” under newly-elected President Luiz Inácio Lula da Silva, which represents an opportunity for French companies involved in renewable and nuclear energy production.
Becht said he would visit Spain next week, to speak with the country that will hold the EU's rotating presidency for six months from 1 July, and is keen to conclude the Mercosur deal.
(with newswires)
