More than 20 years after the commencement of negotiations between the EU and the MERCOSUR countries (Argentina, Brazil, Paraguay, Venezuela, and Uruguay), an agreement has been reached regarding the establishment of a free trade zone.
This was announced by European Commission President Ursula von der Leyen at the MERCOSUR summit in Uruguay. She described the deal as "ambitious and balanced." "This is not just an economic opportunity; it is a political necessity," von der Leyen stated during a meeting with journalists, emphasizing that the EU and MERCOSUR are "like-minded partners" intertwined by culture and history.
The host of the summit, Uruguay's President Luis Lacalle Pou, clarified that progress towards building the free trade zone depends on how quickly the agreement is ratified by individual EU countries and the bloc as a whole.
Indeed, for the deal to be realized, all EU countries must give the green light to the agreement. France has repeatedly warned that it will not accept it, fearing harm to the interests of European farmers and undermining environmental standards. The French authorities, following the concerns of their agricultural sector, worry that cheap, but not always high-quality products may flood in from across the ocean.
Paris is actively seeking partners among EU countries to gather a blocking minority and prevent the agreement from advancing through the approval stages in the European Union.
On the opposite side, a group of countries advocating for the creation of a free trade zone with South America is led by Germany. They hope to stimulate the national economy by increasing duty-free exports, including automobiles, to the MERCOSUR countries.