Free trade with South America: Historical breakthrough for the EU!

Free trade with South America: Historical breakthrough for the EU!

Montevideo, Uruguay - After decades of negotiations, the EU finally completed a free trade agreement with the Mercosur countries of Argentina, Brazil, Paraguay and Uruguay. Ursula von der Leyen, the President of the EU Commission, announced this historical breakthrough during the Mercosur summit in Montevideo. She described the agreement as "historical milestone" and emphasized the creation of one of the largest free trade areas in the world with over 700 million inhabitants. The agreement provides for the elimination of most tariffs between these two regions, which includes both economic opportunities and political necessities in times of global isolation and fragmentation, as the Leyen said. The Federal Association of German Industry (BDI) welcomed this conclusion as an "urgently needed growth impulse for the German and European economy", as reported on Today.

political hurdles and resistance

Although the agreement was ceremoniously announced, the agreement is facing some political hurdles. It needs the approval of all EU member states and the European Parliament before it can come into force. France, Italy, Poland and Austria in particular have expressed concerns and announced resistance. As registered in Kurier , Austria's minister is initially obliged to reject due to a decision of 2019. However, Ursula von der Leyen hopes to use a special procedure to avoid a possible vetom opportunities for Member States, while the legal options are currently open.