Karel De Gucht, the European commissioner for trade, has criticised Argentina and Brazil for introducing what he described as “protectionist measures”. 

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In comments on the sidelines of an EU-Brazil summit in Brussels on Tuesday (4 October), De Gucht (pictured) said that the measures would make it more difficult for the European Commission to ask member states to open their markets to imports from the two countries as part of ongoing trade negotiations.

Talks delayed

Argentina and Brazil are the leading economies in Mercosur, which also includes Paraguay and Uruguay. The next round of EU-Mercosur trade talks is scheduled to take place in Montevideo, Uruguay, on 7-11 November. Both sides are preparing detailed market-access offers, which have already been delayed several times.

Domestic opposition to any future deal has been forming both in Mercosur and the EU, notably in France and Ireland, which are concerned about competition in the beef and veal market.

“I am concerned by some protectionist measures taken over recent months, for example the measures on import licences in Argentina or the recently announced Brazilian measures on taxation for the car industry, which discriminate against imports,” De Gucht told a business audience on Tuesday.

Brazil’s government increased tariffs on imported cars following a steep rise in the value of the real, which ended only in August when the central bank cut interest rates. A European official suggested that currency fluctuations have dampened Brazilian industry’s enthusiasm for a trade deal with the EU.

“Both sides will need to make concessions in order to reach an agreement,” De Gucht said. “If one side takes restrictive measures during the negotiations, this is against the free-trade agreement’s spirit.”

Brazil and the EU reaffirmed their commitment to a trade deal in a declaration at the end of the summit.