Antonio Lacerda / Lusa
The President of the European Commission, Ursula von der Leyen, with Brazilian President Luiz Inácio Lula da Silva, in Rio de Janeiro, before the signing of the EU-Mercosur agreement
The agreement will eliminate tariffs for 91% of EU exports to Mercosur and 92% of South American sales to Europe, opening up a combined market of more than 700 million consumers. A “historic step forward” for some, “an invasion of Europe” for others.
A European Union and the Mercosur This Saturday, they sign the long-awaited agreement that took more than 25 years of negotiations and which creates the largest free trade zone in the world, at a time of growing global protectionism.
Representatives from both blocks are present from 2:30 pm at the Grande Teatro José Asunción Flores of the Central Bank of Brazil. Paraguayin the capital Asunción, a place full of symbolism, as it was there that the Mercosur was launched in 1991.
The host of the meeting will be the Paraguayan President, Santiago Penawhose country holds the rotating presidency of Mercosur, with the European delegation being headed by the president of the European Commission, Ursula von der Leyenand by the president of the European Council, António Costa.
According to official Paraguayan sources, cited by the Spanish news agency EFE, the presence of Argentine leaders is also confirmed, Javier Mileyfrom Uruguay, Yamandú Orsi, from Panama, José Raúl Mulino, and from Bolivia, Rodrigo Paz.
O Panama recently joined Mercosur as an associated state and Bolivia is in the final phase of the accession process as a full member of the South American bloc.
Unless changed at the last minute, the Brazilian President, Luiz Inácio Lula da Silvaone of the main defenders and beneficiaries of the agreement, will be the only one absent among the presidents of the founding countries of Mercosur.
Even so, Lula da Silva received Friday, Von der Leyen in Rio de Janeiro, and had also planned to meet with Antonio Costawho had logistical problems and only arrived at night in the ‘marvelous city’.
The agreement will eliminate tariffs for 91% of EU exports to Mercosur and 92% of South American sales to Europe, opening a joint market of more than 700 million consumers and which, together, represent a GDP of around 19 billion eurosaccording to data from the European Commission.
For the EU, the treaty toopen the doors of a historically protected market to its most competitive industrial sectors, including the automobile industry and industrial machinery, where current tariffs between 35% and 14% will progressively disappear.
Other sectors that will benefit in particular These will be chemicals and pharmaceuticals, as well as agri-food products protected by designations of origin, such as wines and cheeses.
In the case of Portugal, oil and winetwo of the largest Portuguese exports to the giant Brazilian market, will have reduced rates and eliminated over the years.
Signing was only possible after, last week, the 27 countries of the European Union reached a qualified majority to validate the agreement, despite votes against from France, the main opponent, from Poland, from AustriaIreland and Hungary, and Belgium abstained.
According to the President of the European Council, Antonio Costacriticism coming from some agricultural sectors in Europe is based on wrong perceptions of the agreement. “I think that this debate in Europe is very much based on a completely wrong perception of what is foreseen in the agreement”, defended Costa, speaking to the press in Rio de Janeiro.
The former prime minister also recalled that Europe achieved in the agreement “the recognition of hundreds of origin dominations of cheeses, wines, olive oil, which are products of great value in many countries, for example, in France”, one of the countries that opposed the agreement.
To achieve a qualified majority it was necessary negotiate safeguards additional payments for European farmers, who have continued to demonstrate in recent days against the agreement, considered an “” for some, but an “invasion of Europe” for many farmers, who fear for the future.
The safeguards served to convince Italybut they were not enough for France to also join. At the beginning of this month, Paris was the stage for a farmer’s event, which fear the invasion of Europe for competitive products andwith less production control from Brazil, Argentina, Uruguay and Paraguay.
The ‘green light’ from European Union countries to sign the agreement with Mercosur could face the ultimate obstaclesespecially in the process of ratification in the European Parliamentduring 2026.
With a view to ratification, the agreement is considered “mixed” and is divided into two parts, a commercial one and an association agreement, which follow parallel paths.
Both will have to receive the approval of the European Parliament before their formal conclusion, and the association agreement also requires the consent of all EU national parliaments.
