European Parliament Think Tank | 29 October 2020
Amazon deforestation and EU-Mercosur deal
After coming to a political agreement on the trade pillar of the three-pronged EU-Mercosur association agreement in June 2019, the EU and the four founding members of Mercosur (Argentina, Brazil, Paraguay and Uruguay) reached agreement on the political dialogue and cooperation parts in July 2020. However, as environmental deregulation and deforestation continue unabated in Brazil, opposition to the deal is growing. It is unlikely to be submitted to the European Parliament for consent in its current form. A study of the trade pillar’s provisions concludes that, taking the risk of deforestation into account, the deal’s environmental costs are likely to exceed its economic gains. This raises doubts as to whether Brazil’s compliance with its climate change commitments can realistically be achieved based on provisions devoid of an effective enforcement mechanism.
Full report (pdf)