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EU official anticipates Mercosur trade offer this year, dismisses changes on deforestation law

The European Union anticipates to close the trade agreement with South American bloc Mercosur by the end of the year, the EU commissioner for crisis management told Reuters late last week, although keeping in mind there were still differences to be resolved.

Janez Lenarcic, who is not directly participating in the talks with Mercosur, acknowledged that a new EU law banning the import of products connected to the damage of the world's. forests has actually been a sticking point, however stated the law will not. modification - though its implementation is on the verge of being put. off for another year.

Mercosur signs up with Brazil, Argentina, Uruguay, Paraguay and a lot of. recently Bolivia in a market that is a desired destination. for EU manufacturing exporters, though European farmers,. especially in France, fear the competitors it will bring.

Firstly, the European Union desires this arrangement, let. me be extremely clear about that, Lenarcic said in an interview on. Friday in Brazil, where he joined a G20 top concentrated on. environment catastrophes.

There are some open questions, he stated, including the EU. hopes to have the ability to discover solutions to the staying issues. quickly, by the end of this year.

Lenarcic stated he believes the EU's brand-new deforestation law has. affected the settlements, particularly when it pertains to Brazil.

The European Commission proposed, and the bloc's ambassadors. concurred last month, to delay execution of the law by a year. until completion of December 2025 after pressure from some member. states and major farming item exporters such as Brazil.

Lenarcic said the EU has actually listened to the demands to. hold off the law's execution, however kept in mind that, in the end,. the guideline will not change.

A deal in between the EU and Mercosur has actually remained in the works for. some 25 years. The celebrations had announced a contract in 2019,. however it was never ever officially ratified due to EU needs for. commitments on Amazonian logging and environment modification.

A new online meeting in between arbitrators of both blocs. ought to happen in the next couple of days, while a fresh round of. in person talks is anticipated for late November, with hopes of. reaching a deal before Mercosur's meeting in Uruguay in. December, according to Brazil's foreign ministry.

(source: Reuters)