EU, S-America`s Mercosur trade bloc finally reach agreement
Date
12/16/2024 6:38:31 AM
(MENAFN) After 25 years of negotiations, the European Union and South America's Mercosur trade bloc finally reached an agreement this December, promising significant benefits for both sides, such as cheaper food for Europeans and lower-cost cars for Latin Americans. However, the deal now faces a major obstacle: France. Led by President Emmanuel macron and supported by Poland, France has strongly opposed the deal, citing concerns over its impact on EU farmers and the environment.
Mercosur, consisting of Argentina, Brazil, Paraguay, Uruguay, and Bolivia, aims to create one of the world's largest free trade zones. Under the agreement, European consumers would enjoy cheaper beef, poultry, soy, and other products from South America, while EU companies would benefit from easier access to South American markets for cars, machinery, and chemicals. However, the deal also includes safeguards to protect European farmers by imposing limits on the amount of agricultural products, like beef and chicken, that can be imported from South America.
The European Commission, led by Ursula von der Leyen, has hailed the deal as a political and economic necessity, especially in the face of potential US trade wars under President-elect Donald Trump. However, France, as the EU's largest agricultural producer, has raised concerns about the potential flood of cheaper South American beef and poultry, fearing it would harm local farmers and fail to meet EU environmental and quality standards. Macron has also faced increasing pressure from his political rival, Marine Le Pen, leader of the far-right National Rally, who has used the issue to rally support among rural voters and position herself as a defender of French agriculture.
With France's opposition holding significant sway over the deal’s ratification, the agreement's future remains uncertain, as Paris aims to ensure better protection for its farmers while balancing political tensions within the EU.
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