MONTEVIEDO, Uruguay – On December 6, the European Union and the South American Mercosur bloc finalized a long-awaited trade deal despite strong opposition from France, which has vowed to block its ratification. The agreement was reached after European Commission President Ursula von der Leyen attended the Mercosur summit in Uruguay, even though French President Emmanuel Macron called the terms “unacceptable.”
The deal, 20 years in the making, is considered the largest trade agreement ever between the EU and Mercosur, which consists of Argentina, Brazil, Paraguay, and Uruguay. It aims to create an integrated market of 780 million consumers, benefiting both regions economically. However, significant opposition remains in the EU, particularly from France, where concerns over the impact on the agricultural sector persist, especially regarding the influx of Latin American goods produced under lower standards.
The agreement has the potential to strengthen EU exports, especially cars, by eliminating high tariffs, while giving Mercosur countries better access to European markets for their agricultural products. Despite the benefits, political challenges, particularly from France and Poland, could threaten the deal’s ratification in the EU.