Will the EU + the Mercosur block secure a trade treaty?

The EU and the Mercosur bloc of South American nations are looking to complete a long delayed trade treaty by early December, the Financial Times reports, citing diplomats involved in the negotiations. “It is down to a few details… we will need a political decision on a couple of issues,” one Brazilian diplomat said. Javier Milei’s recent election as Argentina’s president could affect the trade pact, however, as Milei previously pledged to pull the country out of Mercosur.

They’re racing against the clock: Brussels is working to finalize negotiations before Brazil’s Mercosur presidency ends on 7 December, an EU official said. Paraguayan President Santiago Peña has warned that Merocusr could back out of the agreement if the treaty is not finalized by 6 December.

Background: The treaty was initially agreed on back in 2019; however, negotiations were delayed when the EU demanded additional environmental commitments from South America.