NewsEU states’ nod on Mercosur trade deal ends 25-year waitThe deal, which comes as Brussels seeks new markets to offset US tariffs and reduce reliance on China for critical minerals, will open free trade with four South American countries.
## Regulation: EU-Mercosur Trade Agreement
Regulation: EU-Mercosur Trade Agreement
The European Union (EU) has provisionally approved its largest-ever free trade agreement, which aims to eliminate tariffs between the EU and the Mercosur group of South American countries, including Argentina, Brazil, Paraguay, and Uruguay. This development follows 25 years of negotiations.
The European Commission finalized negotiations on the agreement, emphasizing its importance in accessing new markets and reducing dependency on Chinese minerals. The agreement will remove tariffs worth 4 billion euros ($4.66 billion) on EU exports such as car parts, dairy products, and wines. In return, Mercosur will gain easier access to the EU market for agricultural products, minerals, pulp, and paper.
On Fri, EU ambassadors from the 27 member states expressed their support for the agreement, with at least 15 countries representing 65% of the EU's population voting in favor. Member states were required to confirm their votes by 5 pm Brussels time (16:00 GMT).
Following this approval, European Commission President Ursula von der Leyen is expected to sign the agreement with Mercosur partners. The agreement will also require approval from the European Parliament before it can be enacted.
The agreement will remove tariffs worth 4 billion euros ($4.66 billion) on EU exports such as car parts, dairy products, and wines.
The EU-Mercosur trade agreement is projected to boost mutual goods trade, which was valued at 111 billion euros ($129 billion) in 2024. The EU's primary exports to Mercosur include machinery, chemicals, and transport equipment, while Mercosur focuses on agricultural products.
To address concerns, the European Commission has implemented safeguards to suspend imports of sensitive agricultural produce, strengthened import controls, and established a crisis fund to support farmers. Despite these measures, some countries, including France and Poland, remain opposed to the agreement.
The agreement has faced criticism from various quarters, including European environmental groups, which have voiced concerns about its potential impact on climate and agriculture. The French government, in particular, faces internal opposition and pledges to contest the agreement in the European Parliament.
Based on reporting by Al Jazeera.