President Dilma Rousseff's initial gamble in the trade area, the agreement between Mercosur and the European Union (EU) for a free trade zone between the blocs will not be carried out this year, according to Folha de S. Paulo. The chances of reaching an agreement have been frustrated due to the resistance of some European countries to the negotiations and the proximity of the elections in Brazil and the change of leadership in the EU.
The intention was to exchange proposals before the World Cup, but negotiations have been postponed to 2015. Talks for a free trade zone between the blocs have been underway since the 1990s. President Dilma Rousseff's team, according to the paper, hoped to achieve this agreement to improve its position in foreign trade and satisfy industry.
Differences among Mercosur countries have also hampered the agreement. Argentina requested a longer grace period for European products to begin receiving tax reductions, compared to the proposals of Brazil, Uruguay and Paraguay. Venezuela refused to negotiate.
