Mercosur leaders to meet Dec 20, ready to sign EU trade deal

Presidents of South American trade bloc Mercosur will meet in Brazil on December 20, hoping to sign a free-trade agreement with the European Union two decades in the making, the host country said Thursday.

December 20 is the deadline set by the European Commission for a green light from European states on the agreement that has met with opposition from France, citing concerns for its agricultural sector.

The EU is set to meet in Brussels next week to decide whether or not to authorize the treaty.

The leaders of Brazil, Argentina, Paraguay and Uruguay, the full members of Mercosur, will then gather in Foz do Iguacu, ready to sign.

The pact will allow the EU to export more vehicles, machinery, wines and spirits to Latin America, while facilitating the entry of South American beef, sugar, rice, honey and soybeans into Europe.

But France is still a holdout.

The "agreement as it stands is not acceptable for us," a French diplomatic official told journalists in Brasilia on Monday on condition of anonymity.

Among other things, France demands measures to ensure all pesticides banned in the EU are also prohibited in products coming from Mercosur countries.

The European Union said Tuesday it will step up checks on agricultural imports, in a move seemingly aimed at appeasing concerns over the trade deal.

The Mercosur summit will be preceded by a meeting of foreign and economy ministers on December 19, also in Foz do Iguacu near the border area between Brazil, Paraguay and Argentina.

If approved, the EU-Mercosur agreement would create a common market of 722 million inhabitants. The treaty must be ratified by the European Parliament and lawmakers in the South American countries.