Ahead of the summit of the South American economic alliance Mercosur, Argentina called for an update of the planned free trade agreement with the European Union. “The agreement offers opportunities to increase production, create jobs and attract investment,” said Argentina’s chief diplomat, Santiago Cafiero, at a meeting of Mercosur foreign ministers in Puerto Iguazu yesterday.
“For the agreement to come out and bring good results for both parties, however, it is necessary to adjust the texts.” quotas.
Cafiero also criticized the additional declaration on climate, environment and human rights demanded by Brussels. “The text unilaterally focuses on environmental protection without considering economic and social development,” he said.
Contract suspended since 2019
The free trade agreement between the EU and Mercosur has been on hold since the conclusion of negotiations in 2019. Mercosur includes Brazil, Argentina, Uruguay and Paraguay. The treaty would create the world’s largest free trade zone with 780 million people. Above all, he must reduce tariffs and thus boost trade.
The agreement still needs to be ratified by all member states. However, it is controversial in South America and Europe. Some countries want to protect their markets, others fear that labor or environmental standards will be weakened.