Negotiations on a free trade area with the EU and the South American confederation Mercosur are nearing completion. European Commission President Ursula von der Leyen said a final agreement would be announced on Friday.
“The finish line for the EU-Mercosur agreement is in sight,” wrote Von der Leyen during a stopover in Brazil. “Let’s work to break them.” The EU and the governments of Brazil, Argentina and Paraguay were involved in the years-long negotiations. The agreement will be announced on Friday in the Uruguayan capital Montevideo.
According to the President of the European Commission, 700 million people will be affected by the “largest trade and investment partnership the world has ever seen”. Both regions would benefit from this.
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Agreement repeatedly questioned
In the summer of 2019, a fundamental political agreement had already been reached on the development of the free trade zones. However, the governments of several countries have repeatedly questioned the agreement, including France, Poland and Austria. Therefore, negotiations continued.
Critics fear, for example, that European farmers will be forced into a brutal price war while fueling the destruction of South America’s rainforests. However, the European Commission points out that the agreement could save EU companies several million euros in customs duties every year and boost exports. She sees no threat to the survival of agriculture.
Division in trade and politics?
After negotiations are completed, the texts must be legally examined and translated into the languages of the contracting states before they can be signed. It would be conceivable that the agreement could be split into a trade part and a political part.
Under the EU treaties, trade agreements can be decided by majority vote; the treaties do not need to be ratified at national level by all Member States. This is only necessary if it includes political agreements that do not fall within the EU’s exclusive area of responsibility.
Venezuela was originally supposed to be part of the free trade zone, but membership was revoked due to violations of basic democratic principles.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
