EU Welcomes “Progress” on Mercosur Deal, Hopes to Sign Soon
The agreement would help the European Union export more vehicles, machinery, wine, and other alcoholic beverages to Mercosur.
Quick overview
- The EU is nearing the signing of a trade agreement with Mercosur after 25 years of negotiations.
- Progress has been reported among EU member states, with expectations to finalize the deal soon.
- The agreement aims to create the world's largest free trade area, enhancing commerce between the EU and Mercosur countries.
- Concerns from France and Italy regarding domestic agricultural impacts have delayed the signing process.
Despite initial resistance from some key EU players, the path toward signing the agreement appears to be nearing its end.
The European Union (EU) said on Monday that there has been “progress” among the bloc’s member states toward approving the trade agreement with South America’s Mercosur countries and that it expects to sign the deal “soon.”
After 25 years of negotiations, the agreement would create the world’s largest free trade area, boosting commerce between the EU’s 27 member states and Mercosur countries.
“There have been discussions, work, and progress over the past two weeks,” said European Commission spokesperson Paula Pinho, who added that the bloc is on the “right track” to sign the agreement in the near future, despite not confirming January 12 as the date expected for formally signing the free trade deal with Argentina, Brazil, Paraguay, and Uruguay.
Why the EU–Mercosur agreement has yet to be signed
The Mercosur meeting in Brazil on December 20 was expected to provide the framework for a vote on the agreement. However, that objective was derailed by opposition from France and Italy, which at the time called for a delay in the signing due to concerns raised by their domestic agricultural sectors.
The agreement would help the European Union export more vehicles, machinery, wine, and other alcoholic beverages to Mercosur countries, in part as a response to global trade tensions. It would also ease access for Mercosur exports to Europe, including beef, sugar, rice, honey, and soybeans.
Many European producers fear they would struggle to compete with an influx of lower-cost products from large producers such as Brazil and its regional partners. In this context, France and Italy have pushed for the inclusion of additional safeguard clauses, stricter import controls, and tougher standards for Mercosur producers in order to protect their farmers.
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