MONTEVIDEO\/BRUSSELS
\nThe European Union and South America\u2019s Mercosur bloc dragged a long-delayed free trade deal over the line on Friday, announcing an agreement — at least in principle — on the pact that has deeply divided nations in Europe.
\nIn a press conference in Montevideo, European Commission President Ursula von der Leyen and her Mercosur counterparts heralded the deal after 25 years of talks, citing the need for free trade in the face of rising protectionism globally.
\n\u201cThis agreement is not just an economic opportunity, it is a political necessity,\u201d von der Leyen said. \u201cI know that strong winds are coming in the opposite direction, towards isolation and fragmentation, but this agreement is our near response.\u201d
\nEuropean officials and proponents of the deal say that it offers a way to reduce reliance on trade with China as well as insulating EU nations from the impact of likely trade tariffs being threatened by US President-elect Donald Trump.
\nThe trade agreement is however just the start of what could be a lengthy endgame to turn it into a reality. It needs to be legalised, translated and then approved by member nations, and could even be blocked, with France the fiercest opponent.
\nA short press conference in Montevideo itself underscored some of challenges. Only von der Leyen and Uruguayan President Luis Lacalle Pou spoke, with no questions taken after. The presidents of Brazil, Uruguay and Paraguay sat in silence.
\n\u201cOnly two of the five spoke and no questions were taken. That in itself, speaks volumes,\u201d said an EU source closely involved in the talks.\u201cThis came out but it came out, but by the skin of its teeth… At least we have the association agreement, the rest will keep playing out in the coming days.\u201d
\nWith negotiators racing against time and pushback against the deal at home, von der Leyen had made a late call to fly in for the summit of Mercosur, which includes farming powerhouses Brazil and Argentina as well as Uruguay and Paraguay.
\nThe agreement saw amendments made to public procurement, auto trading, and critical minerals exports versus a version agreed in 2019. It also saw an annex about environmental measures to defuse South American fears about EU protectionism.
\n\u201cAfter more than two decades, we have concluded negotiations on the agreement between Mercosur and the European Union,\u201d Brazilian President Luiz Inacio Lula da Silva wrote on X.
\nParaguayan President Santiago Pena acknowledged the deal was an important step but cautioned much work remained to be done. \u201cWe have to be very realistic, we have a long way to go,\u201d he told Mercosur leaders later on Friday.
\nEU FARMERS IN OPPOSITION
\nFrance, the most vociferous critic of the deal in the EU, has branded it as \u201cunacceptable\u201d. Underscoring the obstacles it now faces, French Trade Minister Sophie Primas pledged to resist its next stages, citing environmental and farming concerns.
\nEuropean farmers have repeatedly protested against an EU-Mercosur deal that they say would lead to cheap imports of South American commodities, notably beef, that do not meet the EU\u2019s green and food safety standards.European farm lobby Copa-Coge reiterated its opposition to the deal on Friday and called for protests in Brussels. Italy said on Thursday there were no conditions for signing off on a deal. Poland said last week it opposed the free trade deal in its current form.
\nEuropean green groups also broadly oppose the accord. Friends of the Earth calls it a \u201cclimate-wrecking\u201d deal. Conversely, a group of EU members including Germany and Spain say the deal is vital for the bloc as it looks to diversify its trade after the near-closure of the Russian market and discomfort about reliance on China.
\nThey see Mercosur as a market for EU cars, machinery and chemicals and a potentially reliable source of critical minerals, such as battery metal lithium, required for Europe\u2019s green transition.
\nThey also point to agricultural benefits, given the deal offers greater access and lower tariffs for EU cheeses, ham and wine.The trade agreement would require approval from 15 of the 27 EU members representing 65 per cent of the EU population along with a simple majority in the European Parliament.South American negotiators remain optimistic that the EU will eventually give its approval and that France will not be able to rally a blocking minority.<\/p>\n","protected":false},"excerpt":{"rendered":"
MONTEVIDEO\/BRUSSELS The European Union and South America\u2019s Mercosur bloc dragged a long-delayed free trade deal over the line on Friday, announcing an agreement — at least in principle — on the pact that has deeply divided nations in Europe. In a press conference in Montevideo, European Commission President Ursula von der Leyen and her Mercosur […]<\/p>\n","protected":false},"author":2,"featured_media":448100,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-448078","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n