European Union and Mercosur Finalize Trade Deal After Two Decades
The European Union and Mercosur reached an agreement on Friday regarding a long-delayed free trade treaty, which now faces a difficult battle for approval in Europe, where it has met with strong opposition from France.
After more than 20 years of negotiations and five years since the initial agreement, European Commission President Ursula von der Leyen and Mercosur leaders announced in Montevideo that they had reached a consensus.
“This is an agreement in which everyone wins,” said Von der Leyen at a press conference with the Presidents of Argentina, Brazil, Uruguay, and Paraguay.
“This agreement is not only an economic opportunity, it is a political necessity,” she added. “I know strong headwinds are coming from the direction of isolation and fragmentation, but this agreement is our response.”
Fierce Opposition of France
France, the EU country that has criticized the deal the most, has called it “unacceptable.” French Trade Minister Sophie Primas pledged to oppose the next phases of the pact, citing environmental and agricultural concerns.
The trade agreement requires the approval of 15 of the 27 EU members, representing 65% of the population of the bloc, along with a simple majority in the European Parliament.
Latin American Leaders
South American negotiators remain hopeful that the EU will ultimately approve the deal and that France will not succeed in gathering a blocking minority.
Javier Milei, President of Argentina, stated that Mercosur has two options: “Either we accept that Mercosur is not functioning and dissolve it—which is not the Argentine government’s intention—or we adapt it to be functional to the needs of its current members. The second alternative requires an intellectual strategy and a willingness to change,” he remarked.
“This kind of agreement is not a solution, there are no magic solutions… it’s an opportunity, and it will be up to each of us to decide the pace at which we move forward with this agreement, each in our own countries,” said Uruguayan President Luis Lacalle Pou.
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