European Union ambassadors approve agreement with Mercosur, agencies say

European Commission approves agreement with Mercosur The countries of the European Union provisionally approved this Friday (9) the trade agreement with Mercosur, according to diplomats interviewed by agencies France Presse and Reuters. The formalization of votes still depends on the sending of written confirmations by 5pm Brussels time (1pm in Brazil), according to the sources. 📱Download the g1 app to see news in real time and for free Approval paves the way for the signing of the treaty, after more than 25 years of negotiations. Despite the support of business and industrial sectors, the text continues to face strong resistance from European farmers, especially in France. (see below) 🔍 In general, the trade agreement provides for the gradual reduction or elimination of import and export tariffs, in addition to the establishment of common rules for topics such as trade in industrial and agricultural goods, investments and regulatory standards. With the bloc’s approval, the president of the European Commission, Ursula von der Leyen, will be able to officially sign the agreement. The treaty is expected to create the largest free trade area in the world. For Brazil, the largest economy in Mercosur, the treaty expands access to a market of around 451 million consumers and generates impacts that go beyond agribusiness, also reaching various segments of Brazilian industry. READ ALSO Agreement could make European wines cheaper and expand the supply of premium chocolates in Brazil Understand the next steps until signature and entry into force Approval causes celebration among governments and protests; see repercussion More than 25 years of negotiations The trade agreement accumulates more than two decades of negotiations between the two blocs. The expectation is that, even in the face of declared opposition from countries like France, the European Parliament will approve the treaty. The European Commission says the free trade agreement is the biggest ever signed by the bloc in terms of reducing tariffs, eliminating more than 4 billion euros (US$4.7 billion or R$25.3 billion) per year in taxes on EU exports. The estimate is that Mercosur will eliminate tariffs on around 91% of EU exports over 15 years; Meanwhile, the European bloc must progressively remove duties on 92% of Mercosur exports. The blocs also agreed to increase quotas for exempt products in the agricultural sector. According to the European Commission and supporters of the treaty, such as Germany and Spain, the agreement should offer an alternative to dependence on China, especially in the supply of critical minerals such as lithium, essential for battery production. Supporters also claim that the agreement helps mitigate the effects of protectionist measures, such as tariffs imposed by US President Donald Trump. See which countries are involved in the EU-Mercosur Agreement. Art/g1 Agreement suffers resistance Although the majority of Member States were in favor of signing, the agreement still faces resistance from some countries, which point out possible impacts on the agricultural sector. An EU diplomat and Poland’s agriculture minister said 21 countries supported the deal, while Austria, France, Hungary, Ireland and Poland voted against it. Belgium abstained. For approval, the support of at least 15 countries, representing 65% of the bloc’s total population, was necessary. Initial plugin text On the eve of the vote, French President Emmanuel Macron reaffirmed that Paris would vote against the agreement. “While trade diversification is necessary, the economic benefits of the EU-Mercosur agreement will be limited for French and European growth,” he wrote in a statement. 🔎 Among rural producers in France, the agreement with Mercosur is seen as a threat, given the fear of competition with cheaper Latin American products and subject to environmental standards different from those required by the European Union. Ireland also took a stance against the treaty. On the eve of the vote, Prime Minister Simon Harris announced that the country would join France, Hungary and Poland in opposing the deal. “The government’s position on Mercosur has always been clear: we do not support the agreement as it was presented,” Harris said in a statement. Both France and Ireland face protests this Friday over the agreement. Italy plays a decisive role This week, Italy — which until December was against it — signaled support for the treaty. The change had decisive weight and gave a new direction to the negotiations, since the EU’s institutional design gives the Italian vote a strategic character: ratification requires a qualified majority in the European Council, with the support of at least 65% of the bloc’s population. In December, during debates at the European Council, Prime Minister Giorgia Meloni stated that Italy’s support would be conditional on considering the country’s concerns, especially in relation to the impacts on the agricultural sector. 👉 In recent days, this position has been reinforced by a communication from the European Commission, which proposes to accelerate the release of 45 billion euros destined for farmers. Meloni assessed the initiative as a “positive and significant step”. In the same vein, Italy’s Minister of Agriculture, Francesco Lollobrigida, stated that the European Union began discussing the increase — and not the reduction — of resources allocated to Italian agriculture in the period from 2028 to 2034. Flags of European Union countries at the headquarters of the European Parliament, in Strasbourg, France Hassan Anayi/Unsplash

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