Crunch time for EU-Mercosur deal at Rio summit

The fate of a long-awaited but controversial Europe-South America trade deal hangs in the balance this week when Brazilian President Luiz Inacio Lula da Silva hosts a summit of the Mercosur regional bloc.Paraguayan President Santiago Pena, whose country takes over the rotating Mercosur presidency from Brazil in January, has said he will seek trade talks with other regions if there is no EU deal by then.

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