Block in the EU-Mercosur agreement: South American countries have failed to agree on the adjustment of export quotas to the European Union.

The Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay), meeting Wednesday in Montevideo, did not reach an agreement on the distribution of export quotas to the European Union, which benefits from preferential customs duties.

This treaty, resulting from over 25 years of negotiations, is expected to create one of the largest free trade areas in the world, with over 700 million consumers. Although the agreement came into provisional effect in May, it awaits a decision from the EU Court of Justice regarding its legality. The European Union proposed quotas with a preferential tariff regime, but it is the responsibility of Mercosur to decide how to distribute these quotas.

The head of Uruguayan diplomacy, Mario Lubetkin, mentioned that there is still no unanimity, and the positions of Argentina, Brazil, and Uruguay are closer, while Paraguay remains with a different position. Without defined quotas, these will be allocated according to the principle of "first come, first served."

A new meeting is scheduled in 45-60 days to seek a consensus.