This gap between the reality of trade negotiations and expectations for sustainable development explains the impasse we can see today for Mercosur. CETA3, as we recall, «only past,» and it must be recognized that the provisions that have been added to try to allay concerns in the form of transatlantic consultation mechanisms have not really reassured us since then. Moreover, the health crisis linked to the Covid 19 pandemic has not reconciled European views with free trade. And the Brazilian regime (which accounts for 80% of Mercosur`s economy) is caught in a form of contradiction with this agreement: it is part of a programme to liberalize an economy that is now one of the most closed in the world, which generates rent and under-productivity and which satisfies the interests of the agricultural economy, which has a great political power. At the same time, the federal government, through various political signals and the weakening of land laws, has encouraged the «three B`s» (beef, bullets and the Bible) and has also revived deforestation and the destruction of indigenous peoples4, which has further degraded its image among European public opinion, ready to bring its representatives to justice for its decisions on this power. However, for such an agreement to be reached, the largest countries in the region must share a common trade vision, which has not been the case so far: Brazil and Argentina prefer a domestic policy and maintain high tariffs on Mexico, which favours a more open trade strategy (see Chart 3). The total population of the two regions means that the agreement would have a population of 780 million. [5] This is Mercosur`s largest free trade agreement since the bloc`s launch in 1991. [2] It is also the largest EU trade agreement to date on tariff reductions. [2] The scope of the agreement is very broad. [9] In addition to tariffs, it includes rules of origin, trade aid, health and plant health measures (SPS), technical barriers to trade (OTC), services and investment liberalization, competition policy, subsidies, state-owned enterprises (SOEs), trade and sustainable development. It also includes better access to public procurement and intellectual property rights, including «geographic indications» or protection of regional food specialties.

[2] Legal safeguards are in place to protect 357 European food and beverage products from counterfeiting, including Prosciutto di Parma and Herve Cheese. [3] Customs procedures will also be simplified as part of the agreement. [7] In addition to climate threats, deforestation would have a direct impact on Brazil`s indigenous communities,[10] which are already facing a deteriorating situation.