EU's Borrell-Argentina Seems More Open To EU-Mercosur Deal

Wires carrying comments from European Commission High Representative for Foreign and Security Policy Josep Borrell, stating that 'Argentina now seems more open to an EU-Mercosur trade deal.' The comments come a short time after reports claimed that an EU-Mercosur summit could take place towards the end of the month (see 1056GMT bullet, 3 Jan) after earlier prospects of a trade deal broke down in Dec 2023, and would appear to corroborate the original story from Politico.

• It should be noted that talks between the EU and Mercosur have been ongoing since 1999. Talks have frequently tripped up either on the occasion of a change in gov't, or when it comes down to agreeing specifics of agricultural regulations/trade.
• As such, while these comments present a more positive outlook than had been the case several weeks ago, there remain significant obstacles to the agreement, ratification, and eventual implementation of any trade deal.
• France in particular has demanded a halt to deforestation in the Amazon, compliance with COP climate change goals, and crucially mirrored sanitary and phytosanitary standards for farmers faced by those in the EU. Mercosur nations argue these standards are excessive.