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S.America-EU trade talks press on after Macron warning to Brazil
by Staff Writers
Brussels (AFP) June 28, 2019

Bolsonaro says Germany can learn 'a lot' from Brazil on environment
Rio De Janeiro, Brazil (AFP) June 27, 2019 - President Jair Bolsonaro said Thursday Germany has "a lot to learn" from Brazil when it comes to the environment, hitting back at criticism over deforestation in the Amazon.

Bolsonaro made the remarks in Japan on the eve of the G20 summit, where German Chancellor Angela Merkel said Wednesday she would seek "straight talk" with the Brazilian leader over destruction of the rainforest.

"Brazil can be an example for Germany even in the environment," Bolsonaro told reporters shortly after arriving in Osaka.

"Their industry continues to be fossil, largely coal, and ours no, so they have a lot to learn from us."

While Bolsonaro said he was prepared to discuss the issue with Merkel, he was not like some previous Brazilian presidents who "came to be reprimanded by other countries."

"We don't accept being treated like in the past," he said.

Global tensions are growing over the Amazon as illegal loggers, clandestine miners and aggressive farming businesses appear to have found their champion in far-right Bolsonaro, an unabashed climate change skeptic.

The rate of deforestation in the Amazon, which slowed dramatically from 2004 to 2012, surged again in January, the month Bolsonaro took power, according to conservation group Imazon.

Hundreds of activist groups earlier this month urged the European Union to immediately halt negotiations for a trade deal with Mercosur countries over Brazil's alleged harm of its indigenous people and rainforests.

The appeal from more than 340 groups could further complicate the EU's bid to conclude 20 years of talks for a free trade agreement with Brazil and its Mercosur partners Argentina, Uruguay and Paraguay.

In response to a question in parliament Wednesday over deforestation in Brazil, Merkel said she would "take the opportunity at the G20 summit for straight talk because I find what's happening at the moment in Brazil dramatic."

But she said she would not seek to put the trade talks on hold over the deforestation.

"I think that not concluding the Mercosur deal would not have led to one hectare less of deforestation in Brazil. On the contrary," she said.

"That's why I think that not concluding the deal is not the answer to what's happening."

Negotiations between Europe and South America to finalise a blockbuster trade deal will continue Friday, after French President Emmanuel Macron sent a warning shot to Brazil over environmental issues.

Ministers from the South American trade bloc known as Mercosur and top EU officials are hoping to seal what would be one of the world's biggest regional trade agreements but stumbling blocks remain.

"Meetings between the EU and Mercosur continue and each party is working hard to overcome the remaining differences," a source close to the European Commission told AFP, at the talks in Brussels.

Another source on Thursday described the agreement as "still up in the air".

But Macron has threatened to snub the deal if Brazil withdraws from the Paris climate accord that commits signatories to reduce emissions and which Brazil's President Jair Bolsonaro has threatened to leave.

"If Brazil leaves the Paris accord, we could not sign trade deals with them," Macron said Thursday night in Japan en route to Osaka for the G20 summit, which kicks off on Friday.

"The reason is simple, we are requiring our farmers to stop using pesticides... our businesses to reduce emissions. That has a competitive cost," Macron added.

Activists have already urged the EU to halt the Mercosur trade talks over Brazil's alleged harm to its rainforests and indigenous peoples.

German Chancellor Angela Merkel said she wanted "straight talk" with Bolsonaro over "dramatic" deforestation in the Amazon rainforest.

However, Merkel also said the issue would not hold up the trade deal and believes it would boost Europe's economy and ultimately benefit the rainforests in Brazil.

Discussions between heads of state are expected to be held on the sidelines of the G20 summit.

Two decades of EU negotiations with the countries of Mercosur -- grouping Argentina, Brazil, Paraguay and Uruguay -- have repeatedly stalled over the highly sensitive beef market, with cattle farmers in Europe furiously against any deal.

Last week Ireland, Belgium, Poland and France expressed their concerns for farming to European Commission President Jean-Claude Juncker.

Pro-trade members meanwhile have staunchly backed the pact, which would mark a blow against protectionism, with US President Donald Trump caught in a trade war with China that is destabilising the world economy.

More recently, differences have emerged with Brazil over trading meat, sugar and automobiles.

"The political context is quite charged in Europe. The anti-trade rhetoric is strong in many countries, including pro-trade ones," said an EU diplomat.

The increasingly acrimonious debate resembled the pushback against a highly ambitious trade deal with the United States, known as TTIP, that triggered mass protests in Germany, Austria and France a few years ago.

EU sources said Europeans await progress from the South Americans on geographical indications that protect European products such as cognac and Manchego cheese and especially on the opening up of their auto sector.

The EU would like to see the deal passed before the end of the current commission's term later this year.


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