German Chancellor Advocates for EU-Mercosur Trade Agreement
German Chancellor Olaf Scholz has emphasized the urgent need to finalize the long-awaited free trade agreement between the European Union and Mercosur, which includes Argentina, Brazil, Uruguay, Paraguay, and Bolivia. Speaking at a press conference during the G20 Summit in Rio de Janeiro, Scholz stated, "After more than twenty years of negotiations, we must now finally finalize the free trade agreement with Mercosur. It has gone on far too long, and the way it was negotiated is not a good example." He underscored the importance of expanding free trade agreements in a changing global landscape.
Opposition from France and Reassurance for Farmers
Despite Scholz's push for the agreement, significant opposition remains, particularly from France. French President Emmanuel Macron reiterated his stance against the agreement during a visit to Buenos Aires, stating that France would not sign the deal in its current form. Macron expressed his commitment to "reassure farmers" and highlighted concerns raised by Argentine President Javier Milei regarding the agreement's implications. He stated, "France is opposed to this agreement, and I will tell you: President Milei himself told me that he was not satisfied with this agreement."
Details of the EU-Mercosur Agreement
The EU-Mercosur agreement aims to eliminate over 90% of customs duties on a wide range of industrial and agricultural products, potentially facilitating trade worth between 40 and 45 billion euros. The deal includes provisions for tariff-free quotas on South American imports, such as 180,000 tonnes of sugar, 100,000 tonnes of poultry, and 99,000 tonnes of beef. In return, Mercosur countries would reduce tariffs on various European goods, including chocolate, wine, and dairy products. French farmers are mobilizing against the treaty, which they believe could undermine their livelihoods as the European Commission, backed by Germany and Spain, aims to finalize the agreement by the end of the year.
