In recent months, European Commissioner for Trade Cecilia Malmström has been on a winning streak. A major deal with Japan this summer boosted the EU’s credentials as the global leader in free trade and was the third big trophy for the commissioner, who has also concluded pacts with Canada and Vietnam. [...]
Of the two agreements, Mexico is the easier proposition as it centers on upgrading an existing agreement to include more sectors, such as processed food and financial services. Mexico’s fears about U.S. President Donald Trump’s protectionism, and his promise to build a border wall, also greatly increase the likelihood of an agreement with Brussels.
It is Mercosur that presents a far more daunting challenge. The biggest problem is that the bloc includes the farming superpowers of Argentina, Brazil, Paraguay and Uruguay, which all have strong interests in Europe. [...]
Malmström is not without influential supporters in Europe, though. The opposition from farmers is sparking frustration among big European manufacturers in sectors such as cars and machinery, who argue that their ambitions in attractive Latin American markets must not be held back by a small number of clamorous farmers. [...]
The European Parliament also wants to add a sanctions mechanism to the trade deal to enforce the implementation of strict labor, environment and anti-corruption standards — an idea that hasn’t gone down well on the Mexican side.
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