The European Union has reached a major trade agreement with four South American countries, creating one of the largest trade zones in the world. The deal is a significant victory for proponents of free trade and comes as President-elect Donald Trump threatens to impose tariffs on some of the world’s largest economies.
Under the agreement, tariffs will be lifted on products including meat, cars, wine, and chocolate, benefiting European carmakers, pharmaceutical giants, and other industries. However, France has strongly opposed the deal due to concerns about cheap agricultural imports from South America, which could hurt French farmers.
The EU says the deal is crucial for its economic future, particularly Germany’s exports to the Mercosur region, which would be affected by Trump’s tariffs. Ursula von der Leyen, president of the European Commission, described the agreement as a “milestone” for Europe and South America.
However, the French government has expressed concerns that the deal could lead to food dumping, harming its farmers and economy. Environmental groups also oppose the deal, citing potential harm to Amazon forests due to increased agricultural production.
The EU is facing pressure from Trump’s election, which threatens high tariffs on exports to the US and increased competition from China. European leaders are emphasizing the need to diversify trade to mitigate these risks. The agreement marks a shift towards cooperation with South America as Europe seeks to strengthen its economic ties in the face of global uncertainty.
With the deal still pending ratification by EU member states, French President Emmanuel Macron’s government is under pressure to prevent it from being approved. The outcome could fuel suspicion about Brussels’ power and spur support for Marine Le Pen, a nationalist leader who also opposes the deal.
Source: https://www.nytimes.com/2024/12/06/world/europe/eu-trade-deal-mercosur-latin-america.html