Agreement reached on Friday

Mercosur trade agreement nears conclusion

The trade agreement with the Mercosur states is to be adopted on Friday (symbolic image).

(Bild: AFP)

Negotiations on a free trade zone with the EU and the South American confederation Mercosur are nearing completion. EU Commission President Ursula von der Leyen announced that a final agreement would be announced on Friday.

"The finish line for the EU-Mercosur agreement is in sight," wrote von der Leyen during a stopover in Brazil. "Let's work to cross it." The EU and the governments of Brazil, Argentina and Paraguay were involved in the year-long negotiations. The agreement is to be announced on Friday in Uruguay's capital Montevideo.

According to the EU Commission President, 700 million people will be affected by the "biggest trade and investment partnership the world has ever seen". Both regions would benefit.

Here you can see Ursula von der Leyen's statement on X.

Agreement repeatedly called into question
A political agreement in principle had already been reached on the establishment of the free trade areas in summer 2019. However, the governments of several countries, including France, Poland and Austria, repeatedly called the agreement into question. Negotiations therefore continued.

Critics fear, for example, that European farmers will be forced into a merciless price war while at the same time fueling the destruction of rainforests in South America. The EU Commission, on the other hand, points out that the agreement could save companies in the EU several million euros a year in customs duties and boost exports. It does not see any threat to the existence of agriculture.

Cows in Argentina

(Bild: AFP)

Division in trade and politics?
Following the conclusion of the negotiations, the texts still have to be legally checked and translated into the languages of the signatory states before they can be signed. It is conceivable that the agreement could be split into a trade part and a political part.

According to the EU treaties, trade agreements can be adopted by majority vote and do not have to be ratified by all member states at national level. This is only necessary if political agreements are included that do not lie within the exclusive competence of the EU.

Venezuela was originally supposed to be part of the free trade area, but its membership was revoked due to violations of basic democratic principles.