Mercosur, EU May Finally Sign Off on Trade Deal After Years of Delays
Uruguay will host a meeting of the Mercosur trade bloc on Thursday, with signs that the group may finally announce a long-stalled deal with the European Union (EU).
The upcoming summit comes on the heels of last-minute negotiations between the two sides, with European Commission President Ursula von der Leyen set to meet with Uruguay’s President to discuss the matter. The deal has been delayed by European concerns over agricultural imports, particularly from big South American producers like Brazil, Argentina, Paraguay, and Uruguay.
The four founding members of Mercosur – Argentina, Brazil, Paraguay, and Uruguay – have all expressed support for the current terms of the trade deal, with most optimistic about its prospects for approval. The European Parliament’s trade committee has also shown unity behind the agreement.
The trade deal has been in the works for over two decades, with negotiations hitting a snag over concerns about competition from South American farming exports. Brazil has been pushing for the deal, while France has expressed reservations due to fears about the impact on its agricultural sector.
While some EU diplomats are cautiously optimistic about the prospect of an agreement, others remain skeptical, citing the need for more work and potential challenges in getting the deal ratified by each of the EU’s 27 member states.
In a rare display of unity, the European Union’s 11 member states, led by Germany and Spain, are supporting the deal, hoping to reduce their reliance on Chinese trade and shield themselves from potential US tariffs under President-elect Donald Trump.
Argentina’s new libertarian President, Javier Milei, is also expected to make his debut at the summit, with some speculating that a deal could curb his plans to pull out of the Mercosur bloc if the EU trade agreement is approved.
