Spain, Brazil want EU-Mercosur deal, worry about Venezuela

BRASILIA (Reuters) - The governments of Spain and Brazil yesterday reinforced their commitment to completing a trade pact between the European Union and South American trade bloc Mercosur despite protectionist sentiments.

On a two-day visit to Brazil, Spanish Prime Minister Mariano Rajoy said he agreed with Brazilian President Michel Temer about the need to wrap up a trade deal that has taken more than 15 years to negotiate.

Rajoy also called for elections as the only way to reach a negotiated solution to the political crisis in Venezuela, expressing “deep concern” over the volatile situation in the neighbouring country.

“We agree that given the degree of confrontation and the volatility of the situation, a negotiated solution is needed, and it must inevitably involve giving back to the Venezuelan people their voice,” he said.

Rajoy is heading a large delegation of Spanish businessmen who are looking for investment opportunities in Brazilian banking, energy, water and infrastructure sectors.

Brazil is the third-most important market for Spanish investors, who account for the second largest stock of foreign investment in the South American nation after the United States.

Spain is one of the strongest backers of an accord to lower trade barriers between the European Union and Mercosur members Brazil, Argentina, Uruguay and Paraguay. Negotiations have been delayed for years by the reluctance of European farmers and Mercosur manufacturers to face competition.