2024-09-06 05:00:20
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Good morning. Michel Barnier, the former EU Brexit negotiator who has been named France’s next prime minister in a bid to break the country’s post-election political deadlock, is described in this must-read profile by his former chief of staff, senior European Commission official Olivier Guersent, as “a kind of UFO in the French political sky”.
Today, our trade correspondent reports on new moves to reach a Latin American trade deal, and we explain the changing political climate on Italy’s beaches.
Have a nice weekend.
Trading Cards
Table of Contents
Eleven EU member states have launched a new round of bidding for a blockbuster trade deal with Latin America, but it has been put on hold due to French opposition. wrote Andy Bonds.
Background: EU and Mercosur deal negotiators met face-to-face in Brasilia for the first time in five months, as the European Commission seeks to finalize the deal this year. The long-delayed pact was reached in 2019 with Brazil, Argentina, Uruguay and Paraguay (as well as new member state Bolivia) and was agreed in principle.
Now, cross-party leaders including Germany’s Olaf Scholz, Sweden’s Ulf Kristersson and Portugal’s Luiz Montenegro have written to European Commission President Ursula von der Leyen urging her to reach a deal.
“Given rising geopolitical tensions, building strong international alliances is even more important,” they wrote in the letter seen by the Financial Times, adding that “our credibility is at stake”.
They warned of Europe’s waning influence in Latin America – without mentioning China – and noted their “shared values” and “historical ties”.
“If there is no deal, other countries will have greater influence on the Latin American market, both economically and politically. European companies have lost an average of 15% of their market share in the region over the past 10 years.”
The deal was delayed by EU concerns about the Amazon, with governments demanding an additional measure to strengthen sustainability standards.
Even as those issues were being addressed, French President Emmanuel Macron blocked progress on the talks following mass protests by farmers, some of whom feared cheaper food imports from Mercosur.
Paris remains opposed to the deal, with EU farming group Copa-Cogeca criticising it again this week.
However, despite reservations from Ireland and the Netherlands, only Austria joined France in publicly opposing it, and their veto is likely to be overruled by a majority of the EU’s 27 governments.
Von der Leyen has said she wants a deal. It will be an early test of whether she is ready to overcome obstacles to growth identified by former Italian Prime Minister Mario Draghi, who is due to present a report on Monday on how the EU can narrow a growing economic gap with China and the United States.
CHART OF THE DAY: GLOBALIZATION
Amid the great power competition between China and the United States, global trade faces its greatest challenge yet.
Throwing in the towel
The European Commission has for decades urged Rome to reform its system for allocating preferential beach concessions because it violates EU competition rules.
But Brussels now appears willing to wait a little longer, welcoming Prime Minister Giorgia Meloni’s plan to change the rules within three years. Write Amy Kazmin and Paula Tama.
Background: Italy’s coast has long been dominated by thousands of private businesses that rent parasols and sun loungers to holidaymakers. These often family-owned businesses typically pay only a pittance to set up shop on public beaches.
Brussels has been calling on Rome to scrap existing beach concessions and put new licenses to public tender since 2006, but successive Italian governments have balked at doing so, fearing the anger of beach owners and the Italians who support them.
Brussels launched a formal infringement lawsuit against Italy for failing to act in 2020. Former Prime Minister Mario Draghi pledged to go ahead with the auction, but his government fell before the process could begin.
Merloni has been eager to resolve the long-running dispute with Brussels and sent his European Affairs Minister, Raffaele Fitto, to the negotiations to reach a deal to resolve the impasse.
Those talks appear to have borne fruit.
Meroni’s cabinet on Tuesday approved an extension of the existing concession until September 2027 and pledged to hold an auction for new licenses that same year.
Despite the delay, the commission offered encouragement to Meroni. “We have reached a consensus with the Italian authorities. That is why we very much welcome the adoption of this decree,” the spokesman said.
“We hope that the infringement proceedings can be concluded as soon as possible. This is a big decision by the Italian government, but it needs to be translated into facts,” the spokesman said, adding that this meant sticking to the promised timetable.
What to watch today
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Hungarian Prime Minister Viktor Orban and Azerbaijani President Ilham Aliyev European House – Ambrosetti Forum In northern Italy.
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NATO Secretary General Jens Stoltenberg meet Jonas Gaal Stoll, Prime Minister of Norway.
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“Trading Cards”: EU Pushes for Latin American Trade Deal Amid French Opposition
The European Union (EU) is making a fresh bid to reach a landmark trade deal with Latin America, despite French resistance. Eleven EU member states, including Germany, Sweden, and Portugal, have urged European Commission President Ursula von der Leyen to finalize the deal this year. The move comes as the EU seeks to strengthen its economic ties with the region and counter the growing influence of other global powers, such as China and the United States.
Why a Latin American Trade Deal Matters
The EU-Mercosur deal, which has been delayed since 2019, aims to create a massive free-trade zone between the EU and four Latin American countries: Brazil, Argentina, Uruguay, and Paraguay. The deal is seen as crucial for EU companies, which have lost an average of 15% of their market share in the region over the past 10 years.
French Opposition and Sustainability Concerns
However, French President Emmanuel Macron has blocked progress on the talks, citing concerns about the Amazon rainforest and the impact of cheaper food imports on French farmers. EU farming group Copa-Cogeca has also criticized the deal, citing concerns about the environmental and social implications of increased trade.
Overcoming Obstacles to Growth
Despite French opposition, a majority of EU governments are likely to back the deal, which could be an early test of the EU’s ability to overcome obstacles to growth. The issue is particularly pressing, as a report by former Italian Prime Minister Mario Draghi is due to highlight the need for the EU to narrow its growing economic gap with China and the United States.
Chart of the Day: Globalization
[Insert Chart: Global Trade Flows]
Global Trade Flows: A Visual Representation
This interactive chart highlights the complex web of global trade flows, illustrating the EU’s attempt to strengthen its economic ties with Latin America. The chart shows the growing importance of emerging markets, such as China and Brazil, and the need for the EU to adapt to changing global economic dynamics.
Conclusion
As the EU pushes for a Latin American trade deal, it must navigate French opposition and sustainability concerns. The outcome will have significant implications for EU companies, farmers, and the region’s economic growth. With the global economy facing increasing uncertainty, the EU must find ways to overcome obstacles to growth and maintain its influence on the global stage.
Keywords: EU-Mercosur deal, Latin American trade deal, European Union, France, Emmanuel Macron, Olaf Scholz, Ursula von der Leyen, Mario Draghi, globalization, trade flows, emerging markets.
Meta Description: The EU is making a fresh bid for a landmark trade deal with Latin America, despite French resistance. Read the latest on the EU-Mercosur deal and its implications for global trade.
Header Tags: H1: “Trading Cards”: EU Pushes for Latin American Trade Deal Amid French Opposition
H2: Why a Latin American Trade Deal Matters
H3: French Opposition and Sustainability Concerns
H4: Overcoming Obstacles to Growth
H5: Chart of the Day: Globalization
