European Agreement with Mercosur in the Spotlight

The recently signed agreement between the European Union (EU) and Mercosur is currently in the spotlight of specialized and news media.

This is the case for BBC Mundo, which addresses the issue after following its developments and examining its most relevant aspects.

The publication notes this Monday that after more than 25 years of negotiations, the Council of the European Union approved the agreement with the Southern Common Market (Mercosur) last Friday, which includes several clauses designed to ease the discontent of European farmers.

The 27 states that make up the European trade bloc reached a majority, despite announced opposition from countries like France, Poland, and Ireland.

With this result, the President of the European Commission, Ursula von der Leyen, plans to fly to Paraguay and sign the agreement with Mercosur this Monday.

Once the agreement is sealed by both parties, it will pave the way for the creation of the world's largest free trade zone. However, another step is still required for the agreement to enter into force.

After the document is signed in Paraguay, the approval of the European Parliament is also needed, which is expected to decide in the coming weeks.

The outcome of the vote in the European Parliament is uncertain, as around 150 MEPs (out of a total of 720) are threatening to take legal action to prevent the implementation of the agreement.

Argentina, Brazil, Paraguay, and Uruguay are the founding states of the South American trade bloc.

The European Commission (EC) has been negotiating since 1999 with these four countries with the aim of creating a gigantic free trade area, with over 700 million consumers, and eliminating tariffs on more than 90 percent of their bilateral trade.

The path to reach this point has not been easy. The European agricultural sector fears the impact of a massive influx of South American meat, rice, honey, or soybeans, in exchange for the export of European vehicles, machinery, cheeses, and wines to Mercosur.

Those opposed to the trade agreement, led by France, argue that the European market could be severely affected by the entry of more competitive South American products due to production standards considered less rigorous.

Its supporters, such as Spain and Germany, maintain that the agreement will diversify trade opportunities for a Europe threatened by Chinese competition and U.S. tariff policy, BBC notes.