Ursula von der Leyen landed in Montevideo this week seeking to wrap-up a mega-sized trade agreement thats been stuck in talks for about 20 years. The deal between EU and South American Mercosur bloc faces last-minute push-back from Paris
The timing is complex – Emmanuel Macronʼs government just fell apart due to a no-confidence vote (related to budget problems)‚ but his office still found time to call the planned deal “unacceptable“. Despite French resistance other EU countries like Germany want this partnership to happen: they see it as a way to reduce dependence on China and Russia
Uruguayʼs foreign minister Omar Paganini confirmed that negotiators reached common ground on the deal text. The agreement would create a huge trade zone letting South American farm goods flow to Europe‚ while EU gets access to important stuff like lithium for batteries. “The finish line is right there; lets cross it“ von der Leyen wrote on social media platform X
The deal needs approval from:
* All EU member countries
* European Parliament
* Four Mercosur nations
European farmers dont like this deal because they think South American food products will flood their market with cheaper goods that dont follow EUʼs strict rules. But Spainʼs Agriculture Minister Luis Planas says Europe “cant be defensive“ and must open up to new trade partners in todays world
The presence of the EU Commission chief at Mercosurʼs summit shows how close the deal is – though weʼve seen false starts before like that 2019 agreement that never got approved. Still South American officials think EU will eventually say yes‚ even with Frances complaints