The president of the , expressed her satisfaction with the approval of the “historic” trade EU-, which, as she said, she is “looking forward” to signing in Paraguay.
The largest free trade zone in the world
After 25 years of negotiations, the EU-Mercosur deal creates “the largest free trade area in the world”, with more than 700 million consumers, Commission President Ursula von der Leyen said in her statement. Referring to the benefits, she noted that around 60,000 European businesses, mainly small and medium-sized ones, would benefit from lower tariffs, saving “around €4 billion a year”, while assuring that the deal includes “strong safeguards” for farmers and tighter controls on imports.
Today’s Council decision to support the EU-Mercosur deal is historic.
Europe is sending a strong signal.
We are serious about creating growth, jobs and securing the interests of Europeans consumers and businesses.
With Mercosur, we are creating a shared market of 700 million…
— Ursula von der Leyen (@vonderleyen)
He also emphasized that this is a “win-win agreement”, which beyond trade “establishes a new era of political dialogue and strategic cooperation” between Europe and Mercosur countries (Argentina, Brazil, Uruguay and Paraguay).
Ready for von der Leyen to officially sign
Most member states, including Greece, had said they would vote in favor of the Mercosur deal, while France, Poland, Austria, Ireland and Hungary voted against it. Belgium abstained. Approval of the agreement required a qualified majority, ie member states representing at least 65% of the European population.
With the approval of the agreement, the member states authorize the president of the European Commission, Ursula von der Leyen, to go to Paraguay for the official signing of the agreement. However, Von der Leyen did not confirm the exact date of the signing.
In particular, the EU Council today adopted two decisions paving the way for the signing of the EU-Mercosur Partnership Agreement (EMPA) and the Interim Trade Agreement (iTA) between the EU and the Mercosur countries.
What is expected to happen?
According to a statement from the Council, the two agreements are a key step in the multi-year relationship between the two sides and set a modern framework for political dialogue, cooperation and trade. EMPA covers a wide range of areas such as sustainable development, environment, climate, digital transition, human rights, mobility and security, while strengthening EU-Mercosur coordination in international fora. After its signature, a significant part of the political and cooperative funds will be applied temporarily, pending the completion of the ratification procedures.
The Interim Trade Agreement is intended to implement the trade commitments immediately, until the comprehensive agreement enters into full force. It provides for tariff reductions and expanded access to markets for goods and services, with benefits for sectors such as agriculture, automotive, pharmaceuticals and chemicals. It also includes provisions on investment, digital and financial services, as well as on the access of European companies to public tenders in Mercosur countries. iTA falls under the exclusive competence of the EU and does not require ratification by member states.
At the same time, temporary safeguards are provided to protect sensitive EU agricultural sectors, allowing for rapid activation of measures in the event of market disruptions from imports. These measures will apply until a permanent regulatory framework is adopted.
Next step is the official signing of the agreements by the contracting parties. For their completion, the approval of the European Parliament is required, while the full entry into force of EMPA will also depend on its ratification by all EU member states.
