The long-awaited EU-Mercosur trade deal (negotiated since early 2000s) heads to its final stage in Montevideo where Ursula von der Leyen plans to meet South American leaders: its gonna be a tough road ahead.
The deal which took more than 20-yrs to craft faces a real challenge — Emmanuel Macronʼs government dont support it at all. Italy and Poland joined the no-camp too; making the deals future quite shaky.
European farmers raise their voices against cheap South American imports: they worry about unfair competition and different food-safety rules. Green-minded groups also express their doubts — they see the deal as a step back in climate protection efforts
- Cars and machinery from EU to South America
- Critical minerals like lithium for EU
- South American agricultural products
- EU cheese wine and ham exports
Germany Spain and other pro-deal nations see this as a smart move to reduce dependency on Russia and China. The agreement needs support from 15 EU countries (representing 65% of EU population) — South American partners stay positive about getting enough yes-votes despite the French road-block
The timing couldnt be more complex: with von der Leyen flying to Uruguay right after French cabinet shake-up‚ but Mercosur members (Brazil Argentina Uruguay Paraguay) keep pushing forward with their trade vision