Fernando Mario Milano (Professor of Integration Law at the National University of Rosario and University of Buenos Aires, Argentina)

With both blocs concluding negotiations on the EU-Mercosur Trade Agreement, it is pertinent to conduct a cursory study on the potential implications of some of the issues linked to the entry into force of its trade pillar, something that, as we will see later, is still far from happening. Of course, this critical analysis should not lead to the interpretation that our position is completely contrary to the provisions of the agreement; it should only serve to highlight those aspects on which there are considerable disagreements between both blocs, which may even render it inapplicable in practice.

As is well known, after 20 years of negotiations, on 28 June 2019, the European Union (“EU”) and Mercosur reached an agreement “in principle” for a “strategic” partnership. This agreement includes not only economic and trade aspects, but also political and cooperation aspects. It consists of three pillars: political dialogue, trade and cooperation.^[1]

In view of the disagreements that have arisen between the EU and Mercosur on certain sensitive matters – such as deforestation for agricultural production in the territories of Mercosur countries (particularly in relation to Brazil)^[2] – at the request of the EU, an amendment was made to the agreement reached in 2019. In this amendment, in relation to chapter 14 of the trade pillar, a series of parameters to be met for environmental protection were established, in line with the 2015 United Nations (“UN”) Paris Agreement on climate change, duly signed by all Mercosur and EU member countries.^[3]