【By Guo, Guan察者网】After France and Italy tried to delay the EU's vote on the Southern Common Market agreement under the pretext of protecting their domestic agriculture, Brazilian President Lula warned on December 17th local time that the negotiations have lasted for 26 years, and Brazil has made maximum concessions. If the EU insists on delaying, Brazil may directly withdraw from the negotiations.

According to a report by the Financial Times, France and Italy have requested to postpone the vote scheduled for this week. Once the vote passes, the EU will be able to sign the agreement with the Southern Common Market on Saturday (20th). The two countries have asked the EU to obtain additional guarantees to protect the European agricultural industry.

"I have already warned them: if we cannot sign the agreement now, there will be no further related negotiations during my presidency," Lula said at a ministerial meeting on the 17th.

"We have been waiting for this agreement for 26 years. The benefits of this agreement are far greater for them (the EU) than for us. President Macron of France does not want to move forward due to the demands of his country's farmers, while Italy does not know why it is opposing."

"We have already made all possible diplomatic concessions," said Lula.

President Lula of Brazil, IC Photo

The Southern Common Market was established in 1991, and its current members are Brazil, Argentina, Uruguay, Paraguay, and Bolivia, with the first four being founding members. Most goods between member states are traded duty-free, and a unified external tariff policy is implemented.

The free trade agreement negotiations between the EU and the Southern Common Market have lasted for many years. Both sides announced on December 6th last year that they had reached a trade agreement, which aims to create a global free trade area covering about 700 million people.

It is understood that the trade agreement requires approval from at least 15 out of the 27 EU member states, and must also be approved by the European Parliament through a vote. France, Poland, and Italy previously opposed this agreement.

French President Macron had previously stated that the impact of the agreement on the agricultural market has caused widespread concerns, and France would not sacrifice its agricultural sovereignty.

According to EU officials, EU Commission President von der Leyen had originally planned to travel to Brazil on the 20th to sign this agreement.

Italy has demanded that the Southern Common Market agree to new, binding protection measures for EU farmers.

Two EU diplomats revealed that the Italian government insists on using a letter exchange to confirm the EU's right to take countermeasures when imports of agricultural products damage domestic producers' income.

"If we can't sign this week, the agreement is dead," said a third EU diplomat. "The Latin American countries have already become tired of Europe."

However, these diplomats said that a compromise might be reached at the summit held in Brussels on the 18th.

Germany, Spain, and others urgently hope to expand exports of cars and machinery through this agreement. However, as Poland also opposes the agreement, Italy's support is crucial. The industrial sector in Italy strongly supports this agreement, and its stance will determine whether the required majority can be achieved.

To respond to the opposition, the EU Commission proposed a legally binding scheme that clearly defines the measures the EU will take if lowering tariffs on beef, chicken, and grains harms farmers' interests.

"We must use a letter exchange to get the Southern Common Market to accept these bilateral safeguards aimed at appeasing farmers," said one of the EU diplomats.

European Parliament and member states were supposed to finalize these safeguard measures by the evening of the 17th. According to the plan, if there is a surge in agricultural product imports or a drop in prices in a member state, the EU Commission must conduct an investigation and may re-impose tariffs.

Italian Prime Minister Meloni said on the 17th in parliament that signing the agreement this week was "too early." She welcomed the supplementary measures proposed by the EU, including setting up a compensation fund, strengthening border checks, and increasing inspections of producers in exporting countries, but she also pointed out: "Although these measures have been proposed, they have not yet been fully finalized."

EU Trade Commissioner Jozef Szojda warned on the 14th that delaying the voting could lead to the failure of this largest trade agreement in EU history.

"I think this is about the credibility and policy stability of the EU," he said in an interview with the Financial Times.

"In Europe, we often talk about the necessity of developing strategies. Now is the time to make a strategic decision."

Benedicta Duså, Swedish Minister for Trade, said that the EU must demonstrate a "business-friendly openness," which is crucial. "We may currently be sitting on a sinking ship, falling behind in the competition with Asia and even the United States," Duså said.

A senior official from a Southern Common Market member country said: "It is obvious that trade protectionism still prevails within the EU."

"The Southern Common Market has made minimal concessions in the agricultural sector, just a small relaxation of import quotas. Even so, trade protectionists are still demanding additional requirements for an agreement that was finalized a year ago."

Former Paraguayan President Santiago Peña had told the Financial Times in September 2023 that if the EU did not finalize this long-delayed agreement, the Southern Common Market would withdraw from the negotiations.

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Original: toutiao.com/article/7585088996124918326/

Statement: This article represents the personal views of the author.