Fri Dec 06 15:06:22 UTC 2024: ## EU and Mercosur Reach Historic Free Trade Deal After Two Decades of Negotiations, But Faces Significant Backlash

**Montevideo, Uruguay** – After more than 20 years of negotiations, the European Union (EU) and the South American Mercosur trade bloc have finally reached a landmark free trade agreement, European Commission President Ursula von der Leyen announced Friday. The deal, hailed as a “win-win” by von der Leyen, aims to create one of the world’s largest free trade zones, encompassing over 700 million people and nearly 25% of global GDP.

The agreement seeks to reduce tariffs and trade barriers, boosting exports for businesses on both sides. Brazilian President Luiz Inácio Lula da Silva praised the accord, highlighting its environmentally conscious provisions and commitment to the Paris Agreement. However, the deal has already sparked significant opposition within the EU.

France, in particular, has voiced strong objections, with Trade Minister Sophie Primas stating that the announcement only commits the European Commission, not the member states. The agreement requires approval from 15 EU member states representing 65% of the EU population, as well as a simple majority in the European Parliament.

Opposition is also coming from European farmers, who fear unfair competition from Mercosur products that they claim don’t meet EU standards. The Copa-Coge farmers’ lobby has announced protests in Brussels. Italy and Poland have already expressed reservations about the deal in its current form. Environmental groups, such as Friends of the Earth, have also condemned the agreement, labeling it “climate-wrecking.”

Despite the opposition, German Chancellor Olaf Scholz and other leaders celebrated the achievement, emphasizing the deal’s potential to foster economic growth and competitiveness. Supporters highlight the benefits for approximately 60,000 EU companies that export to Mercosur, citing reduced tariffs and increased access to critical raw materials. Spain and Germany see the agreement as crucial for diversifying trade away from Russia and China, pointing to increased market access for European cars, machinery, chemicals, and agricultural products. However, the road to ratification remains uncertain, with significant hurdles to overcome before the deal becomes a reality.

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