BRUSSELS (AP) — European Commission President Ursula von der Leyen arrived in Uruguay Thursday for the final phase of years-long negotiations to conclude a trade deal between the 27-nation EU and the South American trading bloc Mercosur, which would create a transatlantic trade bloc. market of approximately 700 million people.
“The finish line of the EU-Mercosur agreement is in sight. Let’s work, let’s get over it,” von der Leyen said on Thursday, sidestepping objections from some EU member states such as France and protests from farmers across the bloc.
French President Emmanuel Macron, taking into account his country’s vocal and politically powerful farming community, described what was on the table as “unacceptable.” If the deal with the South American bloc – made up of Brazil, Argentina, Paraguay, Uruguay and Bolivia – goes through, EU producers would have to compete with South American agricultural exports such as beef, poultry and sugar.
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“We will continue to steadfastly defend our agricultural independence,” Macron said on Thursday.
Because the European Commission negotiates trade deals for all 27 member states, Von der Leyen could conclude a provisional deal at the Mercosur summit in Uruguay this weekend, only to see it fail because one or more member states refuse to sign it.
A draft agreement was announced in 2019, but disagreements over environmental, economic and political issues have delayed its final approval until now.
If the latter differences are resolved, the EU-Mercosur deal would cover an economic area covering almost a quarter of global GDP. It would focus on lowering tariffs and trade barriers and making it easier for companies on both sides to export goods.
Germany, with its huge car industry, is a big supporter of the deal because it would make selling Volkswagens, Audis and BMWs in Latin America much easier and cheaper.
Von der Leyen’s trip suggested that technical issues between the EU and the South American bloc had been resolved and the way was open for “the highest political level to make the final compromises in an attempt to get a deal over the line” , said Commission spokesman Olof Gill. .
A massive European farmers’ protest movement sent warning shots to negotiators last year, and on Thursday protests by Belgian farmers added their voice by blocking border crossings. They say Mercosur producers would be allowed to flood the market with products that do not have to meet the strict EU environmental and animal protection standards they must adhere to, unfairly undermining the market. In addition, they say South American producers benefit from lower labor costs and larger farms.
If Von der Leyen concludes an agreement, the Commission would still have to translate it into law and only at that stage would it become clear whether some or all parts would need to be approved unanimously or whether a special majority among EU countries would be sufficient to make the deal final.
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Tom Nouvian contributed from Paris
