Without Lula’s presence, the EU-Mercosur agreement will be signed this Saturday; see next steps

Mercosur-EU Agreement paves the way for lower prices After more than two decades of negotiations, the European Union and Mercosur take this Saturday (17) a decisive step towards the creation of the largest free trade zone in the world. The two blocs sign, in Paraguay, the trade agreement that aims to integrate markets, reduce tariffs, and expand the flow of goods and investments between South America and the euro zone. 🗒️ Do you have any reporting suggestions? Send to g1 President Luiz Inácio Lula da Silva (PT) will be the only South American head of state who will not be present. In addition to the president of the European Commission, Ursula von der Leyen, and the president of the European Council, António Costa, the presidents of Argentina, Uruguay, Bolivia and Paraguay are confirmed. Lula received von der Leyen this Friday, in Rio de Janeiro. At the time, he classified the delay in concluding the agreement as “25 years of suffering and attempted agreement”. “Tomorrow [sábado]in Asunción, the EU and Mercosur will make history by creating one of the largest free trade areas in the world, bringing together around 720 million people and a gross domestic product of US$22 trillion. This is a partnership based on multilateralism”, stated Lula. The signature, however, does not end the process: for the treaty to come into force, the text will still need to be ratified by the parliaments of the countries involved — a path that tends to be long and politically sensitive, especially within the EU. Below, see what the next steps are, what is still missing for definitive approval and the main points of tension surrounding the agreement. See which countries are involved in the EU-Mercosur Agreement. Arte/g1 1. Formalization of votes After provisional approval by the Committee of Permanent Representatives (Coreper), a body made up of ambassadors from EU member states, the votes were formalized. The bloc’s capitals had until 5pm, Brussels time (1pm Brasília time) to confirm their votes in writing. This afternoon, Cyprus, which holds the rotating presidency of the bloc, confirmed the accession of European countries by a “large majority”. of the European Commission, Ursula von der Leyen, will be authorized to sign the agreement on behalf of the European Union. The formal signing was expected for Monday (12), in Paraguay, which holds the rotating presidency of Mercosur, but should take place this Saturday (17), according to the Ministry of Foreign Affairs. will need to be analyzed by the European Parliament. Depending on the legal interpretation, parts of the agreement may also have to be approved by the national parliaments of the member countries. of the treaty, especially those related to the reduction of fees, which would allow for some economic effects to be anticipated before full ratification. The agreement only becomes fully valid after all internal approvals are completed in both blocs. The EU-Mercosur agreement Negotiated more than 25 years ago, the agreement provides for the gradual reduction of tariffs, common rules for trade in industrial and agricultural products, investments and regulatory standards. 700 million people. However, the negotiations divided the European Union. Countries such as Germany and Spain support the treaty because they see opportunities to expand exports, reduce dependence on China and guarantee access to strategic minerals. Farmers and environmentalists also criticize the agreement. and stricter environmental requirements. For Mercosur, Brazil has a central role: it needs to demonstrate advances in sustainability and environmental control to facilitate ratification and expand access to the European market. See below the timeline of the agreement.

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