Momentum Builds for Mercosur-EU Trade Deal Amid Geopolitical Tensions

Brazilian Finance Minister Fernando Haddad notes growing momentum for the ratification of the Mercosur-European Union trade agreement, delayed for years. Despite historical opposition from France, changing geopolitical and trade dynamics are fostering newfound willingness to finalize the deal and enhance transatlantic commerce.

Brazilian Finance Minister Fernando Haddad expressed optimism on Monday about the accelerated ratification of the long-stalled trade agreement between Mercosur and the European Union. As geopolitical tensions mount, the agreement, finalized in December after 25 years of negotiations, is gaining traction for legal and official approval.

Speaking in Sao Paulo, Haddad highlighted an unexpected shift in France's stance. Historically, France has opposed the pact over concerns about its impact on local farmers. However, following Haddad's visit to Paris in March, there appears to be increased French receptivity to progressing the deal.

The Mercosur bloc, comprising agricultural leaders Brazil and Argentina, with Uruguay and Paraguay, sees the agreement as crucial. Amid changing global trade dynamics, especially post-U.S. trade tariffs, Brazil maintains strategic links with the U.S., EU, and China, aimed at enhancing its trade horizon.

(With inputs from agencies.)