Spain urged European Union to unblock trade deal with Mercosur given growing Chinese influence in Latin America

The Spanish government has asked the President of the European Commission, Ursula von der Leyen, to unblock the ratification of the trade agreement between the European Union and Mercosur, Spanish media reported on Monday.

According to a letter signed on April 30, quoted by the media The country, President Pedro Sanchez underlined the “strategic importance” of Latin America and considers an agreement with the regional bloc – made up of Argentina, Brazil, Paraguay and Uruguay – to be a key political signal given the growing influence of China in the region. For the same reason, Sánchez also asked the supranational bloc to speed up the update of current trade agreements with Mexico and Chile. two countries not belonging to Mercosur.

In 2019, Mercosur, with a combined GDP of $ 2.4 trillion, and the EU, with nearly $ 14 trillion, announced a trade deal after two decades of negotiations. The pact still needs parliamentary approval from the European Parliament.

In addition to the European Parliament, the ratification of the agreement with Mercosur did not advance because countries like France, Belgium, the Netherlands and Austria they ask for a strengthening of environmental controls, but also by concerns about competitiveness and agricultural issues. The pact continues to confront the reluctance of European farmers to this activity carried out in Mercosur, more competitive.

To unblock the ratification of the agreement, which would cover a market of more than 750 million people, the EU proposed in early 2021 a Complementary joint statement with environmental sustainability commitments, including reducing deforestation in the Amazon.

Spain wants the Union to cancel the deal this year, in which Portugal holds the presidency of the bloc. To save the resistance, Sánchez asked Von der Leyen “for a concrete proposal” in the chapter on sustainable development, and pointed out the “predisposition” of Mercosur in this area, according to The country.

Tour in Brazil and Paraguay

In view of the agreement with the South American bloc, the Spanish Minister of Foreign Affairs, Arancha González Laya, will tour in Brazil Yes Paraguay this week as part of his visits to various countries since taking office just over a year ago.

The trip will start Thursday in Brazil, where he will meet his Brazilian counterpart, Carlos Alberto Franco France, who was appointed by President Jair Bolsonaro after replacing Ernesto Araújo at the end of March.

The two ministers will sign a memorandum of understanding for the creation of the permanent bilateral Brazil-Spain commission, a mechanism with which the two countries intend to reaffirm “the strength of the relationship” and which will allow a permanent exchange of information, said diplomatic sources.

The visit will also serve to give impetus in terms of cooperation to the coordination between the Spanish Agency for International Development Cooperation (AECID) and the Brazilian Cooperation Agency (ABC).

González Laya will arrive in Paraguay on Friday, where he also scheduled a meeting with his Paraguayan counterpart, Euclides Acevedo, with whom he will discuss the celebration of the VII annual consultation mechanism. As in Brazil, the trip will also include a cooperation component.

Both in Brasilia and Asunción, The minister will specify that for the Spanish government, the ratification of the association agreement between the EU and Mercosur is a priority.

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