Despite ongoing concerns from countries such as France, Italy and Poland, the EU Commission has concluded negotiations on a huge free trade zone with the South American alliance Mercosur. This was announced by EU Commission President Ursula von der Leyen after a final round of talks with top representatives of the Mercosur states Brazil, Argentina, Uruguay and Paraguay.
According to von der Leyen’s earlier statements, the agreement is about a common market with 700 million people and the “largest trade and investment partnership the world has ever seen.” With a view to the planned abolition of tariffs and other trade barriers, she announced shortly before the agreement was concluded: “Both regions will benefit.”
A basic political agreement on the establishment of the free trade zone between the EU and Mercosur had actually already been reached in the summer of 2019. However, the deal was then questioned by several EU states and there were years of renegotiations.
Critics fear that European farmers will be forced into a price war in the future while at the same time fueling the destruction of the rainforest in South America. The EU Commission, however, points out that the agreement could save companies in the EU several billion euros in tariffs each year and boost exports. According to her own statements, she does not see any threat to the existence of European farmers.
French President Emmanuel Macron once again expressed his rejection before the agreement was concluded. The deal is unacceptable in its current form, the Elysée Palace wrote on X. In Germany, however, there is broad support. Politicians from the SPD, CDU/CSU and FDP signaled their approval in the Bundestag on Thursday. Government politicians such as Chancellor Olaf Scholz (SPD) and Foreign Minister Annalena Baerbock (Greens) are also in favor of concluding the agreement.
Venezuela will not be part of the free trade zone until further notice. The country’s Mercosur membership was suspended for violations of basic democratic principles.
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