European Commission President Ursula von der Leyen has arrived in Uruguay for final talks on a massive trade deal between the 27-nation EU and the South American Mercosur bloc, which would create a trans-Atlantic market of over 700 million people. The deal aims to reduce tariffs and trade barriers, making it easier for businesses to export goods.
However, some EU member states like France have expressed concerns about the impact on their agricultural industry, particularly beef, poultry, and sugar exports. French President Emmanuel Macron has described the proposed deal as “unacceptable” due to its potential effect on his country’s farming community.
Despite these objections, von der Leyen is pushing for a provisional agreement this weekend at the Mercosur summit in Uruguay, which could be finalized if all member states agree. The EU-Mercosur deal would cover almost a quarter of global GDP and would center on environmental, economic, and political issues.
German car manufacturers are among those who support the deal, as it would make it easier to export goods to Latin America. However, European farmers have raised concerns about South American producers benefiting from lower labor costs and larger farms, which could lead to unfair competition in the EU market.
The Commission has yet to release the final draft of the agreement, but if von der Leyen clinches a deal, it would need to be incorporated into legal text before becoming official. The outcome will depend on whether certain or all parts of the deal require unanimous approval from EU nations.
Source: https://apnews.com/article/eu-mercosur-trade-agreement-farmers-uruguay-ca2ce61cf88b76a328d43c22bb85e00d