The European Union has announced an agreement in principle on a long-awaited free trade deal with the South American Mercosur bloc, ending 25 years of negotiations. The pact aims to reduce reliance on trade with China and insulate EU nations from potential US trade tariffs.
European Commission President Ursula von der Leyen hailed the deal as a “political necessity” and said it would bring economic opportunities and reduce protectionism globally. However, critics within the EU, including France, have raised concerns over environmental and farming issues.
The agreement needs to be legalized, translated, and approved by member nations before its implementation. French Trade Minister Sophie Primas has pledged to resist the deal, citing environmental and farming concerns. European farmers have also protested against the EU-Mercosur deal, claiming it would lead to cheap imports of South American commodities that do not meet EU standards.
Despite opposition from some EU members, proponents of the deal see Mercosur as a market for European goods such as cars, machinery, and chemicals. The agreement offers greater access and lower tariffs for EU cheeses, ham, and wine.
The trade pact requires approval from 15 of the 27 EU member states representing over 65% of the population, along with a simple majority in the European Parliament. South American negotiators remain optimistic that the EU will eventually approve the deal, while French officials may face a blocking minority.
Source: https://www.reuters.com/world/eu-mercosur-set-finalise-contentious-trade-deal-2024-12-06