A great opportunity to acquire new markets versus the murder of European agriculture – such arguments appear in connection with the free trade agreement between the European Union and the countries of the free trade zone in South America. The agreement has just been negotiated by the European Commission and the countries that make up what is known as Mercosur. The negotiations lasted a quarter of a century. Ursula von der Leyen would like to announce success at the start of her next term as head of the European Commission, but it may not be easy – many EU countries do not want such an agreement. They fear the market will be flooded with cheaper agricultural products.
When Europe in Paris celebrated the reopening of the Notre Dame Cathedral, the head of the European Commission paid a visit to Montevideo, the capital of Uruguay, where she finalized a trade agreement with the leaders of the Mercosur group countries, which arouses great emotions in Europe.
Ursula von der Leyen: this agreement is a victory for Europe
– Let me turn to my compatriots – Europeans. This agreement is a victory for Europe. Today, 60,000 companies export their goods to Mercosur countries, 30,000 of them are small and medium-sized enterprises. They will benefit from reduced customs duties, simpler procedures and access to key raw materials. This will create huge business opportunities, said the President of the European Commission, Ursula von der Leyen.
Mercosur is an economic organization bringing together several South American countries. Under the agreement, they could freely ship agricultural products to Europe. Industrial production, e.g. cars, could flow freely in the other direction. According to Ursula von der Leyen, the European Union's agreement with Mercosur is an opportunity to create a market of 700 million people and “the largest trade and investment partnership the world has ever seen.”
The European Commission has already declared success, but the text of the agreement must be adopted by the European Union member states. Agricultural countries are against it – France and Poland were recently joined by Italy, which demands stronger protection for farmers. Macron, Meloni and Tusk may form a so-called blocking minority with several smaller countries.
– It was the European Commission that announced success, but if there are member states, including Poland, that do not like it, such an agreement will not be able to enter into force. Our goal is to ensure the competitiveness of Polish, European agriculture and the safety of our farmers and consumers – comments Adam Szłapka, Minister for the European Union.
Germany for, Italy, Poland, France against
The agreement with Mercosur is supported by countries that focus on industry, including Germany, which could sell more cars in South America, partially compensating for possible losses incurred as a result of the introduction of tariffs by the Donald Trump administration.
“The agreement with Mercosur means food for cars,” say farmers who have been protesting against the agreement with South America across Europe for several weeks. They argue that food producers from overseas can produce it cheaper because they benefit from much less stringent regulations regarding environmental protection and product quality.
Farmers' protest3.12| Farmers have started warning protests across the country, demanding that the government block the Mercosur agreement and suspend the Green Deal and work on a new version of the so-called Fridays for animals.TVN24
The European Commission argues that the agreement with Mercosur includes protective mechanisms to protect the interests of EU farmers, and the agreement is a “win-win” situation in which everyone wins.
– There are no magic solutions. Neither officials nor governments sign prosperity contracts. This is just a chance and it will depend on each of our countries how quickly this agreement will enter into force, said Luis Lacalle Pou, President of Uruguay.
– In an increasingly confrontational world, we show that democracies can rely on each other. This deal is not just an economic opportunity. It is a political necessity, said Ursula von der Leyen.
Now Ursula von der Leyen will convince individual EU countries to reach an agreement. To enter into force, it must receive the support of at least 15 countries representing at least 65 percent of the EU's population. Then the consent of the European Parliament will be required.
As reported by “Frankfurter Allgemeine Zeitung”, the European Commission “expects that Polish Prime Minister Donald Tusk will change his attitude and agree to an agreement after the presidential elections in Poland in May 2025.”
Warsaw denies these reports.
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Main photo source: Reuters