EU-MERCOSUR Free Trade Agreement Faces Hurdles Before Implementation
Protests in a French countryside. The sign reads, “NO to Mercosur,” Dec. 2024. X/ @PoingdeVues
December 6, 2024 Hour: 12:59 pm
This deal would eliminate tariffs on trade between 27 European countries and Argentina, Brazil, Uruguay, and Paraguay.
The conclusion of negotiations for the association agreement between the European Union (EU) and MERCOSUR is not yet the end of the road. Before it can come into effect, the agreement will face significant opposition in the EU Council, the European Parliament, and the parliaments of EU countries.
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France, Italy, Poland, and other EU countries have already expressed their opposition to the agreement. While it has Germany’s backing, the pact threatens to create a new division within the EU.
The agreement would eliminate tariffs on trade between EU member states and Argentina, Brazil, Uruguay, and Paraguay. Together, these nations represent a population of over 700 million people, making this agreement the most expansive association treaty in the world.
After two decades of negotiations, the EU and MERCOSUR reached a trade agreement in 2019. Since then, however, the two blocs have been negotiating environmental commitments demanded by MERCOSUR from EU countries, which has stirred strong opposition from European farmers.
The European Commission, which negotiates on behalf of EU member states, has been pushing for the agreement’s approval, fearing that China might secure a free trade deal with MERCOSUR first. Before the EU-MERCOSUR agreement can take effect, the EU Council must secure support from 15 out of 27 member states to approve the final text agreed upon in Montevideo on Friday.
France is seeking to rally support to block and overturn the agreement. Potential opponents include Italy, Poland, the Netherlands, Austria, Lithuania, Belgium, Luxembourg, and Romania. However, it is uncertain whether any of these nations would actually vote against the agreement in the Council.
The new European Parliament, elected on June 9, will also need to scrutinize and vote on the EU-MERCOSUR agreement. Its International Trade and Foreign Affairs Committees will review the deal first, followed by a vote in the full parliament. Within the European Parliament, opposition will likely be led by the “Patriots for Europe” party (associated with France’s Marine Le Pen), the Greens, and the Left.
Additionally, the EU-MERCOSUR agreement must pass through the national parliaments of all 27 EU member states for it to be fully ratified. If classified as a mixed agreement requiring such approval, countries in the minority in the Council could still veto it through their national legislatures.
The Dutch and Austrian parliaments, among others, have already voiced opposition to the EU-MERCOSUR agreement, citing concerns similar to those raised by opposing governments. This would not be the first time such an obstacle has arisen.
In 2016, the EU-Canada agreement was nearly derailed by a temporary veto from the Walloon Parliament, the southern region of Belgium, which ultimately relented.
teleSUR/ JF Source: EFE
