EU Chief Arrives in Uruguay to Finalize Long-Delayed Mercosur Trade Deal
Source: DairyNews.today
European Commission President Ursula von der Leyen arrived in Uruguay on Thursday, aiming to finalize a long-debated trade agreement between the European Union and South America’s Mercosur bloc.
The proposed deal, two decades in the making, has faced significant opposition in Europe, notably fr om France, which called it “unacceptable.”
Push for a Landmark Agreement
“The finish line of the EU-Mercosur agreement is in sight. Let’s work, let’s cross it. The largest trade and investment partnership the world has ever seen. Both regions will benefit,” von der Leyen stated on social media platform X.
The deal seeks to establish one of the world’s largest trade partnerships, enhancing the flow of goods such as beef and grains. Mercosur, comprising Brazil, Argentina, Uruguay, and Paraguay, is hosting a summit in Montevideo, wh ere leaders and negotiators are expected to unveil the agreement on Friday.
Uruguayan Foreign Minister Omar Paganini confirmed progress: “A text of common agreement has been reached. The presence of von der Leyen shows the success of negotiations.”
Sources involved in the discussions revealed that final obstacles, including provisions on environmental standards and government procurement, have been addressed.
Opposition and Divisions in the EU
Despite optimism fr om negotiators, von der Leyen faces substantial resistance within the EU, wh ere member states and the European Parliament must ratify the agreement.
France remains a staunch critic, with President Emmanuel Macron’s office labeling the deal “unacceptable,” citing concerns over cheap South American imports, particularly beef, which farmers argue do not meet EU’s environmental and safety standards. Macron’s administration, already embroiled in a political crisis after a no-confidence vote ousted Prime Minister Michel Barnier, reiterated its opposition Thursday.
Other EU nations, including Germany and Spain, have voiced strong support for the agreement, viewing it as critical for economic diversification and reducing dependence on markets like Russia and China.
“If we achieve a deal between the EU and Mercosur, it will be great news for the Union,” Spain’s Agriculture Minister Luis Planas stated, highlighting its potential to boost exports and secure critical resources, such as lithium, essential for Europe’s green transition.
A Balancing Act
The EU-Mercosur pact would be the largest trade deal in EU history in terms of tariff reductions. While critics argue it undermines European farmers, supporters see it as an opportunity to foster economic ties with South America and secure strategic minerals for sustainable development.
With a final agreement now appearing imminent, the spotlight shifts to whether the EU can overcome internal divisions to ratify the deal, marking a major milestone in global trade diplomacy.
Push for a Landmark Agreement
“The finish line of the EU-Mercosur agreement is in sight. Let’s work, let’s cross it. The largest trade and investment partnership the world has ever seen. Both regions will benefit,” von der Leyen stated on social media platform X.
The deal seeks to establish one of the world’s largest trade partnerships, enhancing the flow of goods such as beef and grains. Mercosur, comprising Brazil, Argentina, Uruguay, and Paraguay, is hosting a summit in Montevideo, wh ere leaders and negotiators are expected to unveil the agreement on Friday.
Uruguayan Foreign Minister Omar Paganini confirmed progress: “A text of common agreement has been reached. The presence of von der Leyen shows the success of negotiations.”
Sources involved in the discussions revealed that final obstacles, including provisions on environmental standards and government procurement, have been addressed.
Opposition and Divisions in the EU
Despite optimism fr om negotiators, von der Leyen faces substantial resistance within the EU, wh ere member states and the European Parliament must ratify the agreement.
France remains a staunch critic, with President Emmanuel Macron’s office labeling the deal “unacceptable,” citing concerns over cheap South American imports, particularly beef, which farmers argue do not meet EU’s environmental and safety standards. Macron’s administration, already embroiled in a political crisis after a no-confidence vote ousted Prime Minister Michel Barnier, reiterated its opposition Thursday.
Other EU nations, including Germany and Spain, have voiced strong support for the agreement, viewing it as critical for economic diversification and reducing dependence on markets like Russia and China.
“If we achieve a deal between the EU and Mercosur, it will be great news for the Union,” Spain’s Agriculture Minister Luis Planas stated, highlighting its potential to boost exports and secure critical resources, such as lithium, essential for Europe’s green transition.
A Balancing Act
The EU-Mercosur pact would be the largest trade deal in EU history in terms of tariff reductions. While critics argue it undermines European farmers, supporters see it as an opportunity to foster economic ties with South America and secure strategic minerals for sustainable development.
With a final agreement now appearing imminent, the spotlight shifts to whether the EU can overcome internal divisions to ratify the deal, marking a major milestone in global trade diplomacy.
