Trade Regulations

MERCOSUR-EU AGREEMENT MAY INCLUDE ENVIRONMENTAL DECLARATION

Sep, 21, 2020 Posted by Ruth Hollard

Week 202038

Sources familiar with international relations believe that the inclusion of an “attached and interpretive statement” should be adopted in the free trade agreement between the European Union (EU) and Mercosur in order to accommodate European environmental concerns and other controversial issues. This is because there is growing pressure from member countries and civil society in Europe against the current agreement, mainly because of what they see as a dismantling of environmental policy in Brazil. The intention is to look for options to save the treaty.

The European Commission, the executive arm of the EU, is studying the idea of separating the pillar of trade to try to reduce the difficulties in its processing. As a result, the trade side will not require unanimity in the European Council (governments) or ratification by the parliaments of the 27 member countries. In addition, it could be submitted to Parliament more quickly.

But some countries are getting tougher. “The project is dead because it has no environmental ambitions and mandatory provisions, but we don’t want to throw it all away,” a French government adviser told the newspaper “Le Monde”. France lists three additional requirements: the agreement with Mercosur should under no circumstances lead to an increase in deforestation [for products] imported into the EU; public policies in Brazil, Argentina, Paraguay, and Uruguay must fully comply with the Paris Agreement on combatting climate change; and agri-food products imported at a lower tariff, thanks to the agreement, must strictly comply with EU health and environmental standards.

The French government wants to negotiate first with the other members of the EU on what to do and deal later with Mercosur. One hypothesis is to follow the example of the EU-Canada agreement with the inclusion of a “joint interpretative statement” used at the time to alleviate heavy criticism from civil society and serious concerns expressed by governments or parliaments in Belgium, Poland, Hungary, Slovenia, and Ireland. The purpose of the legally binding annex was to “provide a clear and unambiguous statement of what Canada and the EU and its member states have agreed upon in a series of provisions that have been the subject of public debate and concern”. For example, it confirms the common view on public services, labor rights, environmental protection, and an independent system for resolving investment disputes.

Source: Valor Econômico

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