EU and South American trading block conclude after 25 years of deal
EU and South American trading block conclude after 25 years of deal
The European Union on Friday achieved an important free trade agreement with Brazil, Argentina and three other South American nations of the Mercosur-Handel alliance. This agreement crowns in changeable negotiations for a quarter of a century, while France is at the same time threatening, the Controversial Agreement to prevent
A huge market is created
, provided that the agreement is ratified, it could create one of the largest free trade zones in the world. This would cover a market of 780 million people and represent almost a quarter of the global gross domestic product.
economic advantages for companies
Proponents of the Agreement in Brussels argue that companies would save around $ 4.26 billion in tariffs annually. This would reduce bureaucracy and to do tariffs to products such as Italian wine, Argentine steak, Brazilian oranges and German Volkswagen.
criticism from different countries
Critics in France, the Netherlands and other countries with significant milk and cattle industries fear that the agreement will suspend local farmers of unfair competition and Environmental damage.
a historical agreement
The President of the European Commission, Ursula von der Leyen, who headed the Mercosur summit in Uruguay, described the deal as a "really historical event", especially in times when global protectionism increases. "I know that strong winds in the opposite direction, is towards isolation and fragmentation, but this agreement is our clear answer," said von der Leyen, apparently playing on the promises of the future US President Donald Trump to protect American workers and products.
France's resistance
Under pressure from agricultural interests in his country, French President Emmanuel Macron said on Friday that the agreement was "unacceptable" in its current form and that the governments had not yet seen "the final result" of the negotiations. "The agreement was neither signed nor ratified. This is not the end of history," said Macron's office. France calls for additional security measures for farmers and obligations for sustainable development and health controls.
The support of the EU member states
In order to block the agreement, France needs the support of three or more other EU member states that represent at least 35 % of the EU population. The French government tries to mobilize other countries to vote against the agreement and call Austria, Belgium, Italy, the Netherlands and Poland as further states that share concerns about the agreement.
economic growth and export options
For von der Leyen, the agreement offers an excellent opportunity to offer 60,000 companies through lower tariffs , simplified customs procedures and preferred access to raw materials that are otherwise obtained from China. "This will create enormous business opportunities," she promised.
reactions from South America
The President of Brazil, Luiz Inacio Lula da Silva, praised the “modern and balanced document” at the summit in Montevideo, which recognizes the environmental qualities of Mercosur. "We secure new markets for our exports and strengthen the investment flows," he said.
long -term negotiations and challenges
The agreement is the result of 25 years elaborate negotiations , which started with a Mercosur summit in Rio de Janeiro in 1999. These negotiations often failed due to differences in the economic priorities, regulatory standards and agricultural policies.
If the past is a benchmark, the ratification of the agreement could take years, although the current political situation in the affected countries indicates that the chances are better this time.