European Commission President Ursula von der Leyen arrived in Uruguay on Thursday to finalize a long-awaited trade agreement between the European Union and South America’s Mercosur bloc. This comes even as France expresses strong opposition to the deal, labeling it “unacceptable.”
Key Highlights:
Political Context:
Von der Leyen’s visit coincides with a political crisis in France, following a no-confidence vote that led to the collapse of President Emmanuel Macron’s government. Macron is now tasked with appointing a new prime minister.
Trade Deal Overview:
The EU-Mercosur agreement, which has been in negotiation for 20 years, aims to create one of the world’s largest trade partnerships, significantly boosting the flow of beef and grains between the regions. Von der Leyen stated, “The finish line of the EU-Mercosur agreement is in sight… Both regions will benefit.”
Summit in Montevideo:
Mercosur leaders, including representatives from Brazil, Argentina, Uruguay, and Paraguay, are meeting in Montevideo. Negotiators anticipate announcing the deal on Friday after finalizing details related to environmental issues and government purchases. Uruguayan Foreign Minister Omar Paganini confirmed that “a text of common agreement has been reached.”
Opposition in Europe:
Despite the optimism, von der Leyen faces significant resistance from European farmers, particularly in France, who argue that the deal would lead to an influx of cheaper South American imports, especially beef, which do not meet EU food safety and environmental standards.
French Government Response:
Macron’s office reiterated its opposition to the deal, emphasizing that it was “unacceptable,” reflecting the concerns of French farmers who fear the impact on local agriculture.
Support from Other EU Members:
Other EU countries, such as Germany and Spain, advocate for the deal, highlighting its importance for diversifying trade, especially after the near-exclusion of the Russian market. Spain’s Agriculture Minister Luis Planas stated that achieving the deal would be beneficial for exports and demonstrate that Europe is open to trade.
Future Prospects:
South American negotiators remain hopeful that the EU will ultimately approve the agreement, despite French opposition. They believe that France will struggle to form a blocking minority against the deal, given the long-standing EU mandate to negotiate it.