So far, however, the EU has not taken the decisive step forward. For more than 20 years, it has been negotiating the largest free trade agreement in the world with the Mercosur states of Brazil, Argentina, Paraguay and Uruguay. Can Habeck and Özdemir advance the negotiations decisively?
With Lula’s assumption of office, a window of opportunity has opened up that must be used now. Although the mandate for the negotiations lies with the EU Commission, Habeck and Özdemir can certainly work on the big sticking points – and because economic policy in Brazil is always agricultural policy as well, the joint trip certainly makes sense.
Also read: German economy is looking for a new start in South America
While Germany wants to finalize the agreement, Austria has already announced a blockade, and countries like France and Italy are concerned that their farmers’ prices for wine and meat will be spoiled. Is the Mercosur agreement in danger of failing?
There is no doubt that market displacement effects can arise. And like the Americans and chlorinated chicken, GM products like soy are now a major point of contention. A total opening of the European internal market is therefore unlikely.