On 28 June 2019, the EU and Mercosur reached a trade agreement that is one of the largest in the world, covering a combined population of 800 million and representing a quarter of the world’s GDP. The politics of ratification are fraught however, both in Mercosur and the EU.
Importantly, to pre-empt opposition from environmentalists, EU negotiators have included a chapter on “Trade and Sustainable Development”. It includes various commitments on the environmental side, but lacks concrete enforcement mechanisms. We however believe it is a step in the right direction and that eventually this deal will elevate the general standards and environmental, social and governance practices in Mercosur countries.