Displaying items by tag: Mercosur

France is seeking to delay a vote to ratify the long-negotiated EU–Mercosur trade agreement, arguing it threatens farmers and risks inflaming domestic unrest. The deal with Argentina, Brazil, Paraguay, and Uruguay was concluded a year ago after talks dating back to 1999. Supporters say it would open South American markets to European cars, machinery, and wines at a time of US tariffs and rising Chinese competition. Opponents, led by France, warn that cheaper agricultural imports produced under looser standards could undercut European farmers and encourage environmental harm. Protests are intensifying: as many as 10,000 farmers are expected to descend on Brussels as leaders meet. Although the European Commission has proposed safeguards, Paris calls them insufficient and is urging a postponement to secure stronger protections. The timing of the vote coincides with efforts by Sebastien Lecornu’s minority government to secure parliamentary approval for a budget, including suspending Emmanuel Macron’s controversial pension reform, before the end of 2025. Ursula von der Leyen is due to travel to Brazil on Monday next week to sign the agreement and create the world’s largest free-trade area.

Diplomats have said that EU and South American negotiators will meet in Brasilia on 4 September for in-person talks, aiming to finalise the EU-Mercosur trade deal. This agreement, two decades in the making, has faced numerous delays due to a number of concerns expressed by each side. An EU diplomat expressed optimism about concluding the deal by the end of the year. The March visit to South America of Emmanuel Macron, who criticised the deal, paused negotiations until after the EU elections in June. Key issues remain, including European protection of food product names and Brazilian opposition to an EU anti-deforestation law. Farmers in France, Germany, and Belgium have protested against competition from cheaper South American imports. Both EU commission president Ursula von der Leyen and Brazilian president Luiz Inacio Lula da Silva are committed to concluding the agreement.