The European Union and South America’s Mercosur bloc have reached a long-awaited agreement on a free trade deal, marking a significant milestone after 25 years of negotiations. The deal, announced in Montevideo on Friday, aims to foster free trade amid rising global protectionism, according to European Commission President Ursula von der Leyen and Mercosur leaders.
Von der Leyen emphasized that the agreement is not only an economic opportunity but also a political necessity, particularly in response to growing isolationist trends worldwide. The deal involves the Mercosur countries—Brazil, Argentina, Uruguay, and Paraguay—and is seen as a way for the EU to reduce its dependence on China and shield itself from potential U.S. trade tariffs under President-elect Donald Trump.
However, the agreement still faces significant hurdles before it becomes a reality. It must undergo legal processes, translation, and approval by member nations. France, the most vocal critic, has expressed strong opposition, citing environmental and farming concerns. French Trade Minister Sophie Primas pledged to block the deal, while European farmers worry it could lead to a flood of cheaper South American imports, particularly beef, that don’t meet EU standards.
Italy and Poland have also voiced opposition, while green groups, including Friends of the Earth, have criticized the deal for its environmental impact. On the other hand, countries like Germany and Spain argue that the deal is essential for diversifying EU trade, especially following the loss of the Russian market.
Proponents view Mercosur as a valuable market for European exports and a reliable source of critical minerals needed for Europe’s green transition. Despite the challenges, Spain has committed to securing the deal’s approval in the European Council.
NEWS DESK
PRESS UPDATE