The controversial free trade deal between the EU and four South American countries, which has been under discussion for 25 years, appeared to be within reach as European Commission President Ursula von der Leyen was due in Uruguay ahead of the summit between the parties, where a potential agreement might be finalized.
"The finish line of the EU-Mercosur agreement is in sight," von der Leyen posted on X to announce her pending arrival in Montevideo.
On Friday, in the capital city of Uruguay, at a summit of the South American trading bloc, Mercosur, the final agreement is expected to be announced.
The EU-Mercosur deal, covering Brazil, Argentina, Paraguay, Uruguay and the EU's 27 member states, seeks to establish one of the world's largest free trade zones, encompassing over 700 million people.
The trade deal's primary aim is to lower tariffs and boost trade. Bolivia, a new member of Mercosur, and Venezuela, which has been suspended since 2016, are not included.
Backed by Germany and Spain, the European Commission plans to authorize the EU-Mercosur Trade Agreement, which would allow the South American countries to export greater quantities of beef, chicken or sugar to Europe without paying customs duties.
Following the conclusion of the negotiations, the texts for the agreement still need to be legally reviewed and translated into the languages of the signatory states before they can be signed.
However, some EU countries have been blocking the deal, fearing the impact on their agricultural sector, with France leading the resistance. Poland recently passed a resolution opposing the current version of the deal.
To overcome entrenched resistance from EU member states, the commission may decide to split the deal into two parts, the trade pact and a political agreement. This is still undecided.
A split could prevent critical EU countries from preventing the agreement from entering into force.
According to EU treaties, trade agreements can be decided by a qualified majority vote (QMV) and the deals are not ratified nationally by all EU member states.
National ratification procedures are only necessary if the agreements also contain political arrangements that do not fall within the exclusive legal competence of the EU.
Paris is now trying to convince other European capitals to form a blocking minority – representing at least 35% of the EU's population – and oppose the adoption of the trade deal through QMV.
France and Poland jointly account for just under 24% of the EU population, meaning they would have to bring others on board to block the commission's adoption of the deal.
Started in 1999 and agreed in principle in 2019 – yet never ratified – the pact is opposed by European farmers concerned by unfair competition and price dumping in favor of South American products like meat from Argentina and Brazil.
Critics of the deal also argue that it lacks adequate environmental, social and health standards in particular fearing the destruction of rainforests in South America.
