The European Union and South American countries of the Mercosur bloc have concluded talks on their long-delayed trade agreement, European Commission President Ursula von der Leyen announced on Friday.
“Today marks a truly historic milestone,” von der Leyen said after summit talks with Mercosur leaders. “And let me begin by thanking the chief negotiators for their dedication and their determination. They worked tirelessly over many, many years for an ambitious and balanced agreement. And they succeeded.”
The agreement, which took 25 years to complete and would create a market of more than 700 million people, is furiously opposed by France, which fears that a glut of cheap poultry and beef imports would undercut its farmers. Germany, on the contrary, wants Brussels to seize the opportunity to open new markets for its flagging export industry.
Von der Leyen and EU trade chief Maroš Šefčovič flew into Uruguay on Thursday to shake hands with their Mercosur counterparts. That delighted Berlin, but caused uproar in France, where the government had fallen just hours earlier.
“We are sending a clear and powerful message to the world,” von der Leyen said. “In an increasingly confrontational world, we demonstrate that democracies can rely on each other. This agreement is not just an economic opportunity. It is a political necessity.”
Initialing the trade and cooperation agreement with Mercosur — which comprises Brazil, Argentina, Uruguay, Paraguay and newcomer Bolivia — marks the end of political negotiations. The text would still need to undergo legal checks and translation, before on the EU side going to a vote among member states and in the European Parliament.
French President Emmanuel Macron is expected to keep up the fight but would need to expand an anti-deal coalition that already includes Poland, Austria and Ireland to block it. With Italy wavering, eyes will turn to Rome to see whether Prime Minister Giorgia Meloni’s government will tip the scales.
(This story has been updated.)
The post EU, Mercosur countries seal controversial trade deal appeared first on Politico.
