The EU Commission aligns its stance with the South Americans regarding the Mercosur trade agreement.
The EU Commission aligns its stance with the South Americans regarding the Mercosur trade agreement.
Following nearly two and a half decades of debate, the EU has sealed a free trade deal with the South American alliance Mercosur. However, this pact has faced criticism from nations such as France, Italy, and Poland.
Under the guidance of EU Commission President Ursula von der Leyen, negotiations culminated in the formation of a substantial free trade region with Mercosur's constituent nations, Brazil, Argentina, Uruguay, and Paraguay. This announcement followed a final round of discussions with senior officials from these countries.
In Montevideo, Uruguay, von der Leyen declared, "This agreement is an advantage for Europe." It will foster opportunities for individuals and businesses, ultimately leading to more job openings, expanded options, and economic growth. "Businesses will reap benefits from reduced tariffs and streamlined operations," she further explained.
Germany has been urging for a swift conclusion to the negotiations and the subsequent submission of the agreement for approval by EU member states. Berlin is optimistic that the political facet of this deal will be endorsed by a majority vote within the Council of Member States. Notably, while member states retain the power to veto the agreements on political dialogue and collaboration, they will only have this authority over the latter aspect. This potential division of the contract poses potential legal concerns.
Upon the establishment of this free trade alliance, over 700 million inhabitants will collectively reside within one of the world's largest free trade zones. The primary aim is to intensify commerce by minimizing tariffs.
The European Commission, led by President Ursula von der Leyen, played a crucial role in negotiating this free trade deal with Mercosur. The European Commission will now submit the agreement for approval by EU member states, allowing for potential political divisiveness over the collaboration aspect.