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EU-Mercosur Trade Agreement Nears Completion
2024-12-06 05:40:09
Business
Economy

EU-Mercosur Trade Agreement Nears Completion

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The long-awaited EU-Mercosur trade agreement is on the verge of finalization, with European Commission President Ursula von der Leyen pushing for its conclusion. The agreement aims to eliminate tariffs and create a vast market of 700 million people, benefiting both regions economically.

Despite its potential, the deal faces opposition from France, Poland, and Italy due to concerns over agricultural competition and environmental impacts, such as deforestation in the Amazon. The EU-Mercosur pact, negotiated for over 25 years, promises significant savings for European exporters and particularly benefits industries like automotive and chemical.

However, it also raises fears among European farmers about cheap imports from South America. The agreement must be ratified by the EU member states and the European Parliament.

While France's political turmoil poses a challenge, Von der Leyen remains determined to secure the deal, emphasizing the strategic importance of diversifying EU trade relationships in light of global shifts.

Related news on that topic:

EU-Mercosur Trade Deal Nears Completion Amid Protests

The European Union and Mercosur, comprising Brazil, Argentina, Paraguay, and Uruguay, are on the verge of finalizing a landmark trade agreement. This ambitious deal aims to form a massive free trade zone with a market of 700 million people, eliminating tariffs and trade barriers. Despite considerable opposition, particularly from France and other European nations concerned about agricultural competition and environmental impacts, the agreement is set to be announced at a Mercosur summit in Montevideo. EU Commission President Ursula von der Leyen has been pivotal in advancing the agreement, even visiting the region to emphasize its strategic importance. The deal, once completed, would be the largest trade and investment partnership globally, significantly benefiting European industries like automotive and pharmaceuticals. However, the path to ratification remains fraught with challenges. Some EU countries express fears over potential harm to local farmers and environmental consequences, such as deforestation in the Amazon. In response, the EU has proposed safeguards and subsidies to mitigate these risks. Nevertheless, the urgency to finalize the deal is heightened by the growing influence of China in Latin America, pushing the EU to solidify its economic ties in the region. The agreement, originally outlined in 2019, has faced numerous delays due to political and environmental concerns. Yet, with renewed negotiations, the political component addressing regional commitments is nearing completion. As the EU seeks to diversify its trade relationships and reduce dependency on major powers, the deal with Mercosur stands as a crucial opportunity to enhance economic resilience and strengthen global partnerships.

EU-Mercosur Agreement Faces Opposition and Environmental Concerns

The EU-Mercosur free trade agreement is on the brink of finalization, with European Commission President Ursula von der Leyen visiting Uruguay to push negotiations forward. Despite efforts to conclude the deal by the end of the year, significant opposition remains, particularly from France, which deems the agreement unacceptable in its current state. France, along with Poland, insists on protecting agricultural sovereignty, fearing the impact of lower tariffs on imports such as beef and poultry from South America. The agreement, which aims to create a large common market, is also met with resistance from various political factions across the EU, including extreme right and left parties. European farmers express concerns over unfair competition, especially regarding products that use chemicals banned in the EU. China's growing influence in Latin American markets adds urgency to the EU's negotiations, as the bloc seeks to strengthen trade ties in the region. However, environmental considerations are taking center stage, with European negotiators advocating for the inclusion of environmental standards and commitments from Mercosur countries to combat deforestation. While some EU countries like Germany are eager to finalize the agreement, others remain uncertain, with Austria, the Netherlands, Ireland, and Italy still undecided. The potential division of the agreement into separate trade and political components is also under consideration to address objections from critical EU states. Amid protests and ongoing negotiations, the EU-Mercosur agreement continues to face significant hurdles, highlighting the complex interplay between trade interests, agricultural sovereignty, and environmental protection.

Read 2 more recent news on this topic

The press radar on this topic:

EL PAÍS
6. Dezember 2024 um 02:25

Brussels accelerates to close the trade agreement with Mercosur despite the rejection of France

Economy
Politics
The European Commission is trying to save the pact with the Latin American countries, after more than two decades of negotiations, in the face of the EU's loss of space in the region. Your subscription is being used on another device. Your subscription is being used on another device and you can only access EL PAÍS from one device at a time. Óscar López presents his candidacy to lead the Madrid socialists: "Madrid is the epicenter of the worst politics" The use of bicycles is falling in cities..
zdf
5. Dezember 2024 um 21:37

Mercosur Trade Agreement: What it's about

Economy
Politics
Environment
The Mercosur agreement between the EU and South America is intended to create a market of over 720 million people. However, critics fear that the production standards in the Mercosur states of Argentina, Brazil, Paraguay and Uruguay do not meet EU norms and that this could lead to more deforestation of the Amazon rainforest.
gmx
6. Dezember 2024 um 03:37

EU and Mercosur want to pave the way for a huge free trade zone

Economy
Politics
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Mercosur and the EU want to conclude a free trade agreement; the goals are the reduction of tariffs, new growth opportunities for companies; concerns about environmental protection and the competitiveness of farmers.
tz
6. Dezember 2024 um 03:36

EU and Mercosur aim to pave the way for a huge free trade zone

Economy
Environment
Tariffs are to be reduced and business stimulated between Europe and South America. Companies hope for new markets and rising sales. Farmers and environmentalists view the treaty critically. Mercosur countries: Brazil, Argentina, Uruguay.
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