EU and Mercosur try to reach an agreement in September

The European Union and the five Mercosur countries aim to conclude negotiations on a trade agreement that has been delayed for some time before the end of the year, after having managed to make progress on points where there was disagreement.

The information was confirmed by the governments of Brazil and Uruguay, the country that holds the pro tempore presidency of Mercosur.

“We are interested in closing the deal,” said a spokesman for Montevideo’s foreign ministry. “It is a geopolitical and economic necessity,” said an EU diplomat.

Officials from both sides told the Financial Times that despite France’s objections, the deal had gained new momentum towards completion after 20 years in the works.

Mercosur is a coveted destination for European Union exporters. According to the European Commission (EC), the body that proposes common EU legislation, the agreement would create a market of 780 million people and save European companies more than €4 billion a year in trade tariffs. Investments by EU companies in the five South American countries total €330 billion.