(Reuters) – European Commission President Ursula von der Leyen’s Latin American visit could seal the deal on the EU-Mercosur trade agreement, marking a historic moment in global trade.
Von der Leyen expressed optimism, stating, “The finish line of the EU-Mercosur agreement is in sight. Let’s work, let’s cross it. The largest trade and investment partnership the world has ever seen. Both regions will benefit.”
The Mercosur bloc, consisting of Argentina, Brazil, Paraguay, and Uruguay, is expected to announce the agreement during their meeting in Montevideo. This deal would result in significant tariff reductions and stands as the EU’s largest trade agreement to date.
Despite opposition from European farmers concerned about cheap imports and differing standards, other EU members, like Germany, view the deal as crucial for diversifying trade and securing key resources for the bloc’s green transition.
Approval from EU countries and the European Parliament is required for the agreement to take effect.
In summary, European Commission President Ursula von der Leyen is on a mission to finalize the EU-Mercosur trade agreement, which could have significant implications for global trade. Despite opposition from some European farmers, the deal is seen as vital for the EU to diversify its trade relationships and secure key resources for its green transition. Approval from EU countries and the European Parliament is crucial for the agreement to move forward, highlighting the complex dynamics at play in international trade negotiations.