BRUSSELS (Reuters) – The European Union and Mercosur are expected to finalize a long-awaited trade agreement this Friday, which is expected to face a tortuous battle to be approved in Europe due to staunch opposition from France.
After negotiations that lasted more than 20 years and five years after an agreement was initially signed, the president of the European Commission, Ursula von der Leyen, and Mercosur leaders are expected to announce an agreement at 9:30 am (Brasília time) in Montevideo, capital of Uruguay.
Von der Leyen traveled to Uruguay on Thursday ahead of the planned summit of the bloc, which includes Brazil, Argentina, Uruguay and Paraguay, just hours after the collapse of French President Emmanuel Macron’s government.
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France, the EU’s most vocal critic of the deal, called it “unacceptable” and diplomatic sources said the European Commission was taking a big risk, with approval from EU members far from certain.
European farmers have repeatedly protested the deal which they say would lead to cheap imports of South American commodities, particularly beef, that would not meet EU food and ecological safety standards.
Italy said on Thursday there were no conditions to sign an agreement. Poland said last week it opposes the deal in its current form.
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European environmental groups also largely oppose the deal. Friends of the Earth calls it a “climate-killing” deal.
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On the other hand, a group of EU members, including Germany and Spain, say the agreement is vital for the bloc, which seeks to diversify its trade after the near closure of the Russian market and discomfort with dependence on China.
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They see Mercosur as a market for EU cars, machines and chemicals and a potentially reliable source of essential minerals such as battery-grade lithium metal needed for Europe’s energy transition.
They also point to agricultural benefits, as the deal offers greater access and lower tariffs for EU cheese, ham and wine.
The trade deal would require approval from 15 of the EU’s 27 members, representing 65% of the EU population, as well as a simple majority in the European Parliament.
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South American negotiators remain optimistic that the EU will eventually give its approval and that France will not be able to muster a minority to block the deal.
