MONTEVIDEO, Uruguay (AP) — european union Brazil, Argentina and three other South American countries in the Mercosur trade alliance agreed on Friday to a major free trade agreement, ending a quarter-century of on-and-off negotiations despite France vowing to derail the deal. I hit it. controversial agreement.
If ratified, the agreement would create one of the world’s largest free trade zones, covering a market of 780 million people, nearly a quarter of the world’s gross domestic product (GDP). It will be.
Supporters of the deal in Brussels say the deal will save companies about $4.26 billion a year in tariffs, eliminate red tape and sell products such as Italian wine, Argentine steak, Brazilian oranges and Germany’s Volkswagen. claims that tariffs will be abolished.
Critics from France, the Netherlands and other countries with large dairy and beef industries say the deal will expose local farmers to unfair competition. cause environmental destruction.
From Uruguay, the host country of the Mercosur Summit, European Commission President Ursula von der Leyen He hailed the agreement as a “truly historic milestone” at a time when global protectionism is on the rise.
“We know that there are strong winds blowing in the opposite direction towards isolation and division, but this agreement is our clear response,” von der Leyen said, clearly showing a strong relationship with American workers. They were mindful of President-elect Donald Trump’s pledge to protect supplies.
Under pressure from the country’s powerful and vocal agricultural lobby, French President Emmanuel Macron said on Friday that the deal remains “unacceptable” in its current state, and governments must wait for the “final outcome” of the negotiations. He emphasized that he had not seen it yet.
“This agreement has not been signed or ratified. This is not the end of the story,” Macron’s office said, adding that France called for additional protection measures for farmers and commitment to sustainable development and health care. He added that
France would need the support of at least three other EU member states representing at least 35% of the EU’s population to block the deal.
The French government, which is rallying countries against the deal, cited Austria, Belgium, Italy, the Netherlands and Poland as other alarmist nations that share France’s concerns about the deal.
The agreement will also need approval from the European Parliament before it can enter into force.
In remarks addressed to “fellow Europeans” and perhaps especially French skeptics, Ms. von der Leyen promised that the deal would result in the growth of 60,000 companies. lower tariffsstreamlined customs procedures, and preferential access to raw materials sourced from China.
“This will create a huge business opportunity,” von der Leyen said.
She then spoke to European farmers who fear an influx of cheap food imports will threaten their livelihoods. South American countries do not have to follow the same standards for animal treatment or pesticide use.
“We are listening to you, listening to your concerns and acting on them,” von der Leyen said.
Anger over environmental regulations, rising costs and unregulated imports sparked massive farmer protests across the continent Over the past year.
Leaders on both sides of the Atlantic, who have long promoted the deal, praised Friday’s announcement and hailed the outcome as a boon for export industries.
This is the first major trade agreement for Mercosur, which is made up of Argentina, Brazil, Uruguay, Paraguay, and now Bolivia. The member states have previously been able to conclude free trade agreements only with Egypt, Israel and Singapore.
“An important obstacle to an agreement has been overcome,” said German Chancellor Olaf Scholz. Germany’s vaunted auto industry is poised to benefit.
Spanish Prime Minister Pedro Sanchez called the deal an “unprecedented economic bridge.”
At the Mercosur Summit held in Montevideo, the capital of Uruguay, Brazilian President Luiz Inacio Lula da Silva praised the “modern and balanced document that recognizes Mercosur’s environmental credentials”.
“We are securing new markets for exports and strengthening investment flows,” he said.
Brazil’s Trade and Investment Promotion Agency said the deal is expected to increase the country’s exports to Europe by $7 billion.
libertarian President Javier Millay of Argentina He said the agreement was in line with his free market principles. Argentines are excited to sell more beef and agricultural products in the EU.
This contract is the result of 25 years. painstaking negotiationIt dates back to the Mercosur summit in Rio de Janeiro in 1999. Negotiations broke down. Regarding differences in economic prioritiesRegulatory Standards and Agricultural Policy. Protectionist tendencies continue to rise Hope turned upside down.
It gained momentum in 2016 when former President Trump imposed harsh tariffs on Europe. At the same time, pro-market governments came to power in Brazil and Argentina, South America’s largest economies, which had been closed for many years.
Negotiators announced this in June 2019. The agreement included provisions for tariff reductions and a commitment to environmental standards.
However, it was never implemented. In Brazil, the region’s economic powerhouse, former right-wing Brazilian President Jair Bolsonaro, presided over Record deforestation in the Amazonurges EU governments to: Demand stricter sustainability standards. A new left-wing protectionist government emerges in Argentina opposed the agreement.
However, things changed for the better when politics in the region changed again in 2023. President Lula of Brazil came to power. Commit to curbing illegal loggingsoothing Concerns that the deal could accelerate deforestation. Argentina’s Millei is working to open up his country’s notoriously closed and crisis-hit economy.
But if past EU trade deals are any indication, ratification could take years.
“We celebrate this agreement, but it is still far from reality,” Millais said of the agreement.
In 2016, the EU and Canada signed an agreement known as the Comprehensive Economic and Trade Agreement (CETA), but the approval process remains rocky.
The German parliament only signed this agreement two years ago; The French Senate rejected the bill in March this year..
“Anyone who can remember is skeptical,” said Brian Winter, vice president of the New York-based Council of America. “They have ousted their leaders, declared victory, and celebrated, but there always seems to be a problem.”
___
Debre reported from Buenos Aires, Argentina. Associated Press writers Mauricio Savarese in Sao Paulo, David Villar in Rio de Janeiro, Lorne Cook in Brussels and Sylvie Corbet in Paris contributed to this report.
