EN 
PT_BR 
Environment, climate and human rights. The agreement between Mercosur and Europe is marked by environmental guidelines that must be respected so that the treaty can be implemented. The agreement is expected to be concluded in 2023.
If approved and finalized, the agreement plans to create one of the largest free trade zones in the world, with more than 700 million people, boosting trade and eliminating tariffs.
However, there is still resistance from some countries in the Mercosur bloc, which want to protect their markets and fear flexibility in relation to labor or environmental standards.
Ursula von der Leyen, president of the European Commission, expressed interest in implementing the agreement. “Our goal is to resolve all outstanding issues as quickly as possible so that we can conclude this agreement, from which both parties will benefit,” says von der Leyen.
About the agreement
The treaty provides for facilitating trade between the blocs by eliminating customs and export tariffs from South America and Europe, over a period of 10 years. The objective is to reduce import and export trade tariffs until they are completely eliminated.
The European Union foresees an investment of 45 billion euros within the agreement with Latin America and the Caribbean. The funds, which will be subsidized from the budget of member states and the European Investment Bank, should guarantee Europe's supply of raw materials such as lithium, for example, used in the manufacture of electric car batteries.
The investment should also be applied to the Amazon region, expanding telecommunications networks, the construction of electrical lines in Colombia, as well as purchasing electric buses in Costa Rica.
According to the Federal Government of Brazil, the agreement between the blocs is balanced. “A balanced agreement between Mercosur and the European Union, which we intend to conclude this year, will open new horizons. We want an agreement that preserves the parties’ ability to respond to present and future challenges.”
Rainforest deforestation
For the agreement to be concluded, Mercosur countries must agree to the additional agreement on the protection and preservation of existing forest areas. Among the requirements of the preservation agreement are adherence to the Paris Agreement, as well as provisions on biodiversity and combating deforestation.
According to a document published by the German Ministry of Agriculture, “the agreement provides for the protection of forest cover and the promotion of the reduction of deforestation and sustainable forest management, in line with the 2030 Agenda for Sustainable Development. Furthermore, the parties commit to promoting the inclusion of local and indigenous populations in sustainable supply chains of wood and non-wood products in order to improve their living conditions and the sustainable management of forests.”
The regulation was created in order to promote “deforestation-free supply chains”, which establishes that only deforestation-free products can be offered on the domestic market.
The rules cover raw materials such as soy, palm oil, beef, coffee, cocoa, rubber and wood. This type of agreement aims to ensure that there is no deforestation of forests for European supply and consumption.
