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EU: LatAm-Mercosur Trade Deal Could Come In Early Dec: Politico

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The European Union and the five-member South American trade bloc Mercosur are looking to sign a long-awaited trade deal in early December according to officials with knowledge of the matter reports Politico. There had been speculation that next week's G20 summit in Rio de Janeiro, Brazil could be the opportune moment to sign the deal. However, the presence of Chinese President Xi Jinping and Mercosur's likely efforts to bolster ties with Beijing would risk overshadowing the agreement with the EU, pushing back its confirmation. Indeed, speaking in her confirmation hearing on 12 Nov, European Commissioner-designate Kaja Kallas said “If we don’t do a trade agreement with [Mercosur], then this void will be filled really by China,”. 

  • The final in-person talks are set to take place the week of 25 November, ahead of a Mercosur summit on 2-4 Dec. These events come after planned protests by farmers in Belgium and France, who have long objected to what they perceive will be unfair competition from South American producers as a result of any EU-Mercosur deal. Belgian farmers are taking action at the EU HQ in Brussels today (13 Nov), while French farmers begin their action on 18 Nov.
  • The loss of influence for French President Emmanuel Macron at the EU after a testing year is seen to have eliminated Paris' de facto veto on the deal. Politico also reports it is unlikely France can cobble together a 'qualified minority' to block the agreement, boosting the chances of its passage after 20 years of negotiations. 
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The European Union and the five-member South American trade bloc Mercosur are looking to sign a long-awaited trade deal in early December according to officials with knowledge of the matter reports Politico. There had been speculation that next week's G20 summit in Rio de Janeiro, Brazil could be the opportune moment to sign the deal. However, the presence of Chinese President Xi Jinping and Mercosur's likely efforts to bolster ties with Beijing would risk overshadowing the agreement with the EU, pushing back its confirmation. Indeed, speaking in her confirmation hearing on 12 Nov, European Commissioner-designate Kaja Kallas said “If we don’t do a trade agreement with [Mercosur], then this void will be filled really by China,”. 

  • The final in-person talks are set to take place the week of 25 November, ahead of a Mercosur summit on 2-4 Dec. These events come after planned protests by farmers in Belgium and France, who have long objected to what they perceive will be unfair competition from South American producers as a result of any EU-Mercosur deal. Belgian farmers are taking action at the EU HQ in Brussels today (13 Nov), while French farmers begin their action on 18 Nov.
  • The loss of influence for French President Emmanuel Macron at the EU after a testing year is seen to have eliminated Paris' de facto veto on the deal. Politico also reports it is unlikely France can cobble together a 'qualified minority' to block the agreement, boosting the chances of its passage after 20 years of negotiations.