The proposed free trade agreement between the European Union and the Mercosur countries, including Brazil and Argentina, is facing significant opposition. The deal aims to create one of the largest free trade zones globally, lifting tariffs on 91% of goods exchanged. While Germany and Spain advocate for it, foreseeing economic benefits, other EU members like France and Poland oppose it, citing concerns over agricultural impacts and lower environmental standards in South America.
France's President Emmanuel Macron is under pressure, as his opposition to the agreement aligns with farmers' protests against potential competition from cheaper South American imports. Poland has joined France in opposing the deal, with both countries expressing worries about the agricultural sector and environmental ramifications like deforestation in the Amazon.
Proponents argue that the EU's strict consumer standards would apply to imports, and quotas would limit sensitive goods such as beef and sugar. Nevertheless, critics highlight the risks of undermining local agriculture and environmental standards.
The EU Commission, led by Ursula von der Leyen, is eager to finalize the agreement, with discussions ongoing for over two decades. There is speculation that the Commission might separate the trade components from political elements to secure approval through a qualified majority, bypassing full consensus. This approach could sideline major EU members like France and Poland, raising political tensions.
The broader geopolitical context also plays a role, with the EU seeking to diversify trade relations and reduce dependency on the US and China. The Mercosur agreement could strategically position the EU in South America, competing with China's growing influence.
