Agreement between Mercosur and the EU: probably not this year

The Brazilian government is no more waiting to close within this year a free trade agreement between Mercosur and the European Union (EU). According to the Brazilian newspaper Folha de São Paulo, the resistance of the Europeans, the change of command in the European bloc and the Brazilian presidential elections in October would have slowed down the possibility of reaching an agreement.

According to government advisers heard by the newspaper, the EU would have withdrawn and is no longer committed to exchange proposals. First, the government of Dilma Rousseff believed an offer could be done between January and March of this year. Later, they were expecting that it would be possible to exchange proposals by June. Mercosur negotiators have warned that the agreement should be reached until the World Cup, otherwise, it would be possible only in 2015.

The change of command, in both Brazil and Europe, would have been one of the main reasons for the retreat. Differences in Mercosur would also have influenced. The proposal of the South American bloc was practically ready, but it still lacked some adjustments.

Brazil’s deficit in service transactions with the EU sum € 8 billion

The EU obtained with Brazil its sixth largest surplus in trade in services (€ 8 million euros), according to data released by the statistical office of the EU, Eurostat. In total, last year Brazil imported € 14,037 billion in services from Europe and exported only € 6,375 billion.

Brazil does not figure among the top five trading services partners with the European bloc. The largest services negotiators with Europe are United States, Switzerland, China, Russia and Japan.

The data may indicate, according to the Digital Monitor website, that having Europe and the United States as key strategic partners may lead Brazil to expand its position as an exporter of primary goods and an importer of technological goods and services.