European Commission President Ursula von der Leyen arrived in Latin America on Thursday to finalize a long-delayed trade agreement between the European Union and the South American Mercosur bloc, which includes Argentina, Brazil, Paraguay, and Uruguay.
“The finish line of the EU-Mercosur agreement is in sight. Let’s work, let’s cross it. The largest trade and investment partnership the world has ever seen. Both regions will benefit,” von der Leyen said in a post on X.
Mercosur’s meeting in Montevideo on Thursday is expected to culminate in an announcement regarding the deal, which is set to be the largest trade agreement ever struck by the European Union in terms of tariff reductions. The agreement is intended to strengthen economic ties and open new markets for both regions.
However, von der Leyen faces significant opposition at home, particularly from European farmers who argue that the deal will flood the EU market with cheap South American commodities, especially beef, which do not meet the same environmental and food safety standards as EU-produced goods. France has been the most vocal critic of the deal, though its political focus has been diverted by the collapse of French Prime Minister Michel Barnier’s short-lived government.
Despite this opposition, other EU member states, such as Germany, argue that the EU-Mercosur deal is vital for the bloc. They emphasize the need to diversify trade relationships, especially following the near-complete closure of the Russian market and concerns about EU dependence on China. Additionally, the Mercosur countries are seen as potential suppliers of critical minerals, including lithium, which are essential for the EU’s green transition.
If an agreement is reached, it would still require approval from EU member states and the European Parliament before it can be finalized.