Scholz ups pressure to finalize Mercosur trade deal

RIO DE JANEIRO — German Chancellor Olaf Scholz called Monday for the European Union to urgently conclude the mega trade deal with the South American trade bloc.
“After more than 20 years, we now need to finalize the free trade agreement,” Scholz told reporters on the sidelines of the G20 summit in Rio de Janeiro, Brazil.
The German Chancellor’s push to wrap up the deal came as French President Emmanuel Macron tried to delay talks during a tour of Latin America, going as far as seeking help from populist Argentinian President Javier Milei.
Brazilian officials held a bilateral meeting with Commission President Ursula von der Leyen on Sunday. Minister for Agriculture and Livestock Carlos Fávaro told reporters on Monday: “The deal would be very good for Brazil and the EU,” and added: “We have never been so near to finalizing this deal.”
Scholz argued that delays would harm the EU’s reputation as a trading partner. “It’s been going on for too long. The way it has been negotiated, this is not a good example,” he told reporters, according to the AFP. Germany strongly supports the deal, which is seen as a much-needed boost for its flagging export-driven economy.
“We need to finalise Mercosur. We need more trade agreements. We transferred the power to negotiate trade agreements to the EU, but our goal was not to have less agreements — but more and more meaningful ones,” Scholz told reporters. “I feel like there is some pressure on this thing. It needs to be finished now and we stand with the EU once it presents an agreement.”
Time is running out however for Macron as European Commission President Ursula von der Leyen is planning to finalize the deal as early as next month.
The French president is facing pressure from French farmers who took to the streets to protest the Mercosur deal on Monday, and has been at pains to show he is battling hard to derail talks.
After talks with Milei on Sunday, the French president said the pact with the Mercosur countries was a “bad deal” and that it was “harmful to French farmers.” Macron also said he did not believe that von der Leyen would sign a deal without French support.
“Ursula von der Leyen has a great respect for France’s voice. We just want a fair deal, and we continue to work together,” he said.
This article has been updated.