“This is a mutually beneficial agreement that will bring significant benefits to consumers and businesses on both sides. We focus on justice and mutual benefit,” said von der Leyen.
The free trade agreement between the EU and Mercosur, which includes Argentina, Brazil, Paraguay and Uruguay, and Bolivia also wants to join, could create a market for up to 700 million people by reducing tariffs on more than 90 percent of goods, he wrote the Financial Times.
However, the Reuters agency reminded that the agreement has yet to be approved by the EU member states, and a great wave of opposition has arisen against it. The loudest critics are France and European farmers, who have repeatedly protested against the agreement. According to them, it would lead to cheap imports of South American commodities, especially beef, which does not meet EU ecological standards and food safety standards.
The EU came close to a trade agreement with South America
Economy
Italy also stated on Thursday that there are no conditions for signing the agreement. Poland, in turn, said last week that it is against the free trade agreement in its current form.
The Czech Agricultural Union expressed itself in a similar spirit, according to which the agreement will threaten the competitiveness of Czech farmers, the health of consumers and will have a negative impact on the environment. In addition, there will be an increase in bureaucracy.
On the other hand, Germany and Spain claim that the agreement is vital for the EU bloc as part of diversification after being cut off from the Russian market and due to fears of dependence on China. Mercosur countries consider it a potentially reliable source of critical mineral resources such as lithium used for electric car batteries.
And he also sees positives for agriculture, as the agreement will offer better access and lower tariffs for cheese, ham and wine from the EU, Reuters reported.
In order for the trade agreement to pass, the consent of 15 of the 27 EU members, who make up at least 65 percent of the Union’s population, is needed. It must also be approved by a majority of the European Parliament. However, South American negotiators remain optimistic because they believe that France will not be able to get a sufficient majority on its side for blocking.
Angry farmers again blocked the highway near Paris
Foreign
