In a shocking decision, French President Emmanuel Macron told the European Commission this Monday (29) that it was impossible to move forward in trade negotiations with Mercosur countries. This statement was recorded in an official note from the French leader's office.
Macron supports this position and emphasizes that the European Union shares the same understanding and agrees that an agreement is not achievable in this context. In addition, Macron stressed that it was up to France to conclude that the European bloc had instructed its negotiators to end talks during a meeting in Brazil.
Reasons for breaking off negotiations with Mercosur
Although the specific reasons for the paralysis of negotiations have not been clarified, it is possible to consider a context of increasingly complicated trade relations on the international stage.
Macron's decision reflects growing tensions between the European Union and Mercosur, a bloc that includes Argentina, Brazil, Paraguay and Uruguay.
Despite this impasse, there is still no official statement from either bloc confirming the end of these negotiations, leaving the possibility of a future resumption of these talks open.
Impact of such negotiations on Brazil
Negotiations between Mercosur and the European Union have been discussed for more than two decades and involve largescale commercial interests. A possible implementation of this agreement would represent a milestone and offer numerous opportunities to expand trade between the two blocs.
For Brazil, the largest economy in Mercosur, the suspension of negotiations represents a setback. The country could benefit from a significant increase in exports to the European Union, particularly in the agricultural and industrial sectors.