Argentina, Brazil seek 12.5b euros in aid

Request comes in EU-Mercosur talks to conclude trade agreement

MADRID/ BRASILIA:

Argentina and Brazil are requesting 12.5 billion euros ($13.2 billion) in financial aid from the European Union in talks to conclude a trade agreement with South America’s Mercosur bloc, according to a document seen by Reuters.

Three EU and South American diplomats confirmed the Argentine request, which is backed by Brazil, in the rotating presidency of the four-nation Mercosur.

Argentina and Brazil have also pushed to exclude more kinds of government procurement from European competition, but Uruguay and Paraguay did not back the idea because it could delay or derail a deal in the works for two decades, two diplomats said.

“To ensure fulfillment of the objectives of this agreement, the EU shall allocate financial resources ... for an amount of not less than EUR 12.5 billion in grants, loans and other financial instruments,” said the text presented two weeks ago.

A spokesman for Brazil’s foreign ministry said Mercosur’s position was evolving and the text seen by Reuters might not be the latest version. “There are changes being discussed and agreed upon,” he said.

The EU funds, meant to compensate for increased competition, would be available when tariffs start dropping, according to schedules in the trade in goods chapter, the text said.

Published in The Express Tribune, October 22^nd, 2023.

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