The president of Paraguay has threatened to pull out of negotiations on the EU-Mercosur trade agreement if a deal is not reached before December 6.
The South American country will take over the presidency of the Mercosur bloc from Brazil from that date.
President Santiago Pena, who was sworn in last month, hit out at the pace of the negotiations and previously told the Reuters news agency that the EU has “no clear interest in moving forward” due to sustainability proposals it has put forward.
Trade deal
The controversial EU-Mercosur trade deal was brokered in 2019 but its ratification has been stalled due to concerns raised by member states, including Ireland.
These concerns include deforestation in Brazil, the potential impact of imports on the EU beef market and the imposition of stricter standards on EU farmers compared to primary producers in the Mercosur countries of Argentina, Brazil, Paraguay and Uruguay.
The EU-Mercosur deal would allow for an additional 99,000t of beef from the South America trade association to enter the EU tariff-free.
Earlier this year, the EU sent a letter to the Mercosur countries seeking more commitments on sustainability and climate change.
The president of Paraguay recently outlined his concerns to Brazilian President Luiz Inacio Lula da Silva at the United Nations (UN) general assembly in New York.
According to Reuters, Pena said that he would dedicate more time to trade agreements with other regions, such as the United Arab Emirates (UAE) and Singapore, if a EU-Mercosur deal was not reached.
“If he [President Lula] does not close, I am not going to continue (the talks) in the next semester,” he told a press conference.
President Lula previously stated that it was his intention to have the EU-Mercosur deal concluded by the end of the year.
He said that Brazil wanted to strengthen its discussions with the EU in relation to industrial growth and development and the climate change issue.
EU Commission president Ursula von der Leyen has also outlined her ambition to “settle any remaining differences as soon as possible” to ensure a deal can be struck.