The president of the European Commission has promised a beefed-up trade policy to combat China’s global influence. But when Ursula von der Leyen announced her plans, she made no mention of the stalled trade pact with Latin America’s biggest trade bloc.
Speaking in Strasbourg this month, von der Leyen said she would submit trade agreements with Mexico, Chile and New Zealand for ratification by the European parliament and member states and pursue talks with Australia and India. But the sweeping 2019 pact with the South American Mercosur bloc was ignored. Mercosur includes Brazil and Argentina, two of the biggest economies in a region where Chinese trade and investment have grown significantly over the past two decades.
Brussels is awaiting the result of Brazil’s October presidential election, insisting Brasília sign a separate commitment to protect the Amazon, before it ratifies the Mercosur deal. Polls suggest leftwinger Luiz Inácio Lula da Silva will defeat rightwing populist Jair Bolsonaro, who has strained relations with most EU leaders because of his failure to rein in deforestation and support indigenous rights.