EU and Mercosur on the way to signing a free trade agreement
09.12.2024 3228

EU and Mercosur on the way to signing a free trade agreement

The European Union and the South American economic bloc MERCOSUR (Argentina, Brazil, Uruguay, Paraguay)agreed on a free trade agreement. The EU-Mercosur partnership is designed to provide significant mutual benefits through enhanced geopolitical, economic, sustainable and security cooperation. This agreement must now be approved by the Council and Parliament, writes Worldfootwear.com.

"This is a win-win agreement that will bring significant benefits to consumers and businesses on both sides," said European Commission President Ursula von der Leyen, stressing that the agreement includes "robust safeguards" to protect farmers' livelihoods, ensures compliance with health and food standards and will save EU businesses €4 billion a year in export duties.

“For Europeans, this opens up a vast region to free trade, including access to critical raw materials, and reduces the risk that competitors will replace us in our absence. The deal creates a market for more than 700 million people and saves businesses in Europe billions a year in tariffs. For both sides, it will create many more jobs and opportunities. This is the right foreign policy and a good day for the EU and our partners in Latin America,” added Kaja Kallas, High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission.

The agreement, meanwhile, faces a tough fight for approval in the European Council and parliament. France, which has been the EU's most vocal critic of the deal, has called it "unacceptable" on environmental and agricultural grounds. European farmers have repeatedly protested against the EU-Mercosur deal, which they say will lead to cheap imports of South American goods. Italy and Poland have also said they see no reason to sign such a deal.

At the same time, as Reuters writes, a group of EU members, including Germany and Spain, believes that the deal is vital for the bloc as it seeks to diversify its trade after the near-total closure of the Russian market and the high risk of dependence on China.

Marina Shumilina

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EU and Mercosur on track to sign free trade agreement The European Union and the South American economic bloc Mercosur have agreed on a free trade agreement.…
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