Agreement with EU increased Canada's interest in Mercosur, says government

With the signing of the trade agreement between Mercosur and the European Union, the Brazilian government noted a "significant" increase in the interest of other partners in trade negotiations with the South American bloc.

After the historic treaty, President Luiz Inácio Lula da Silva's (PT) team is moving towards finalizing the fourth free trade agreement signed in four years.

According to the Secretary of Foreign Trade, Tatiana Prazeres, there is room to close the agreement with Canada in 2026.

In May, Mercosur officials were in Toronto to continue negotiations on a free trade agreement for the bloc. The meetings brought five chapters of the treaty to the closing stage.

In Tatiana Prazeres' assessment, the trade agreement with the EU showed other countries that Mercosur is capable and interested in concluding relevant trade agreements.

In addition, she considers that the treaty raises a warning among other partners that there is a competitor having preferential access to the markets of Brazil, Argentina, Paraguay and Uruguay.

"The fact that the Europeans have concluded an agreement that is already being implemented makes others see our region differently. This increases the interest of Canada and others in the Mercosur bloc," Tatiana told CNN Money.

To close the agreement with the Canadians, there are still some relevant pending issues in relation to market access. Among the issues being negotiated are the tariff liberalization schedule and rules of origin - central topics in this type of negotiation.

'It is natural that at this point in the negotiation there is a combination of offensive and defensive interests that still need to be addressed", said the secretary.

In addition to the European Union, the South American bloc has already signed trade agreements with EFTA and Singapore. In the list of negotiations, Mercosur seeks to advance with Indonesia, Vietnam, India, Mexico and the United Arab Emirates.

Source: CNN