Brazilian President Luiz Inácio Lula da Silva has rejected an addendum requested by the Europen Union to the planned free trade agreement between the European Union and the South American economic alliance Mercosur.
"This is unacceptable," Lula said on Tuesday at the summit of Mercosur heads of state and government in the Argentinian city of Puerto Iguazú, which is located on the border with Paraguay and Brazil near the world-famous Iguazú Falls.
"We don't want an agreement that condemns us to being just suppliers of raw materials forever," Lula said. He had previously made a counter-proposal.
"I would like to work to ensure that we can conclude the agreement with the European Union in these six months and think about other things," Lula said with a view to the Brazilian Mercosur presidency for the next six months. "We want to discuss the agreement, but we don't want to be forced into anything."
Argentina's President Alberto Fernández also criticized the additional declaration on climate, environment and human rights proposed by the EU.
"It puts too much focus on environmental protection without considering economic and social sustainability," Fernández said. He also accused the EU states of protectionism, especially in agriculture.
The 27-nation EU has been negotiating with the Mercosur bloc - which includes Brazil, Argentina, Paraguay and Uruguay - since 1999 on a deal to create one of the world's largest free trade areas.
While an agreement in principle was achieved in 2019, outstanding concerns on both sides have held up progress.
