German Economy Minister to Promote Free Trade Deal with Mercosur During Brazil Visit


(MENAFN) The German Economy minister, Robert Habeck, has announced his plans to promote a free trade deal between the European Union (EU) and the South American confederation Mercosur during his official visit to Brazil. Habeck expressed his hopes that an agreement can be reached on the stalled agreement, particularly with Brazilian President Luiz Inacio Lula da Silva in power.

According to the German news agency DPA, Habeck mentioned that the deal has already been negotiated but still has questions from both sides. The agreement has been long-negotiated with the countries in Mercosur, including Brazil, Argentina, Paraguay, and Uruguay. Habeck, along with Agriculture Minister Cem Ozdemir, will be visiting the region to pursue the deal.

Habeck added that the agreement would be "an opportunity for South America as well as for Europe and for Germany" if its sustainability is ensured. As part of the trip, Habeck and Ozdemir aim to determine whether such a deal is possible with Brazil and the other countries in the Mercosur agreement.

The EU-Mercosur trade deal, which has been under negotiation for over 20 years, was finally agreed upon in 2019. However, it has yet to be ratified by all member countries. The agreement would create a market of around 800 million people and reduce tariffs on goods traded between the two regions. It has faced criticism from environmentalists and farmers, particularly due to concerns about deforestation and the impact on small-scale agriculture.

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