The South American countries can't agree on how to divide exports to the EU
Mercosur countries remain at odds over how to divide low- or zero-tariff exports to the EU under their newly implemented trade agreement.
Under the EU–Mercosur trade deal, provisionally in force since 1 May, Argentina, Brazil, Paraguay and Uruguay can export set quantities of agri-food products to the EU at preferential tariff rates.
But the four countries have yet to agree on how to split those quotas and are currently relying on a first-come, first-served system.
The issue dominated the Mercosur leaders’ summit, which wrapped up on Tuesday in Asunción, Paraguay. Hosted by Paraguayan President Santiago Peña, the meeting was attended by Brazil’s Luiz Inácio Lula da Silva and Uruguay’s Yamandú Orsi, while Argentine President Javier Milei was notably absent.
