Until Brazil makes a political commitment to curb deforestation in the Amazon rainforest, the trade deal between the European Union and Mercosur will not advance toward ratification in Europe, the EU’s envoy in Brasilia said.
This is about survival: scientists warn that the Amazon is approaching a tipping point beyond, which the rainforest cannot sustain itself. If that happens, there would be a massive die-off of plant and animal species.
A study of the trade pillar’s provisions concludes that, taking the risk of deforestation into account, the deal’s environmental costs are likely to exceed its economic gains.
The US administration is holding talks with Brazil on trade in ethanol and sugar, but a broader free trade deal is unlikely in the near future, US trade representative (USTR) Robert Lighthizer said.
The new pact is expected to ease trade barriers, strengthen regulation and crack down on corruption.
The Amazon is under attack but the Canadian government plans to continue negotiating a Canada-Mercosur free trade agreement with Brazil. But you can do something about it.
The fundamental bargain is quasi colonial: this means that Mercosur countries are left with the task of providing commodities, agricultural produce, ore and energy products, while the EU will provide higher value-added products and services.
The agreement builds on rules facilitating commerce already in effect between Chile and Mercosur bloc nations Brazil, Argentina, Paraguay and Uruguay.
An estimate by Brazil´s Confederation of Agriculture and Livestock (CNA) points out that the conclusion of a free trade agreement between Mercosur and Canada has the potential to increase Brazilian export revenues of agricultural products by US$7.8 billion.
US and Brazilian officials are working on a deal covering trade facilitation, digital trade and regulatory practices, with a target for the end of the year, a top Brazilian diplomat said.
The US House Ways and Means Committee said it opposed pursuing any type of trade agreement with the Bolsonaro government in Brazil, given its record on human rights and the environment.
This briefing is meant to provide a discussion for NGOs in Brazil who want to understand the implications of this deal for people and forests and take action.
The ongoing differences between Brazil and Argentina are expected to have important implications for the future course of action within MERCOSUR and its engagements with other trade and economic partners including India.
Environmental safeguards within the agreement, which were already insufficient even before COVID-19, have now made the document outdated.
Action would come in the face of the neighboring country’s announcement that it will abandon negotiations on the organization’s agreements.
The report urges Brazil to go further in signing more trade agreements, to ensure favorable market access for its farm products.
The US and Brazil are hoping to conclude an agreement on trade rules and transparency this year, including trade facilitation and good regulatory practices.
This is Brazil’s 10th and India’s 4th bilateral investment agreement since both nations had adopted their Model Bilateral Investment Treaty.
Mexico is negotiating with Brazil to expand economic cooperation and believes it can find areas of mutual benefit even though the Brazilian economy is “very closed,” Economy Minister said.
India inked an Investment Cooperation and Facilitation Treaty with Brazil – the first one after Prime Minister Narendra Modi’s Government in December 2015 approved a new template for such bilateral pacts.