economy and politics

Von der Leyen closes the EU-Mercosur trade agreement despite French opposition

Deutsche Bank loses court battle over payment for Postbank acquisition

This article was originally published in English

The European Commission and the Mercosur countries announced on Friday the conclusion of an agreement creating a free trade area covering 780 million people. However, the agreement will have to be sealed by the EU Member States.

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More than twenty years after the start of negotiationsthe European Union and the countries of Mercosur -Argentina, Brazil, Paraguay and Uruguay- have reached finally a trade agreementThe president of the European Commission, Ursula von der Leyen, announced on Friday from a summit in Uruguay. “Today marks a truly historic milestone,” von der Leyen declared, adding that the agreement was “ambitious and balanced.”

The negotiators of the Latin American trade bloc met in Montevideo with the EU trade negotiation team to outline the agreement, which will cover 780 million people between both areas. But the agreement will need the approval of the 27 EU member states.

France, which opposes the agreement, has been trying for several weeks to convince its partners to block it. Poland has officially announced its intention to join a coalition against the agreement, and in a statement published on Friday Italy conditioned its agreement on guarantees for its farmers. The votes of Ireland, the Netherlands and Austria remain doubtful.

For its supporters, the agreement will open new markets for Europeans, while maintaining their influence in the region at a time when China is increasing its investments in Latin America. Critics are concerned about competition from imports of agricultural products in Europe.

“The final political agreement” reached on Friday is “only a first stage before a long process,” a Commission spokesperson said of the future signing of the agreement by EU member states.

Reaching an agreement in the face of strong French opposition It comes at a delicate time for French President Emmanuel Macron, who has personally trumpeted France’s opposition to the deal, and who is currently faced with the task of appointing a new government following the collapse of Prime Minister Michel Barnier’s administration this week. week.

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