site.btaEU Council Gives Go-Ahead for Mercosur Deal

The Council of the European Union on Friday greenlighted the signature of the EU agreement with the Mercosur countries (Argentina, Brazil, Paraguay and Uruguay), said the Cypriot Presidency of the Council.

The Council of the EU adopted two decisions authorizing the signature of the EU-Mercosur Partnership Agreement and of the Interim Trade Agreement between the EU and Mercosur. Together, these agreements mark an important milestone in the EU’s long-standing relationship with the Mercosur partners. Once in force, they will establish a framework for political dialogue, cooperation and trade relations within a modernized and comprehensive partnership, the Cypriot Presidency of the Council said. 

Earlier in the day, the Greens/EFA group in the European Parliament (EP) called on the MEPs to back a resolution requesting an opinion from the European Court of Justice on the compatibility of the agreement with the European Treaties. Meanwhile, the two largest groups in the EP, the European People's Party (EPP) and the Progressive Alliance of Socialists and Democrats (S&D), expressed their support for the agreement. The Greens reported that France, Poland, Ireland, Austria and Hungary voted against the deal.

European Commission President Ursula von der Leyen said in a statement: "I greatly look forward to signing this landmark deal soon," after 25 years of preparations.

"It is also a testament to the endurance and strength of our relationship with Latin America," von der Leyen added. "At a time when trade and dependencies are being weaponized and the dangerous, transactional nature of the reality we live in becomes increasingly stark, this historic trade deal is further proof that Europe charts its own course and stands as a reliable partner," the EC President said.

She noted: "Today, 60,000 European companies export to Mercosur, half of these are small and medium-sized enterprises that will benefit from lower tariffs, will save around EUR 4 billion every year in export duties and will benefit from simpler customs procedures. Crucially, it will also give our companies better access to critical raw materials. We have heard the concerns of our farmers and our agricultural sector and we have acted on them. This agreement contains robust safeguards to protect their livelihoods. We are also stepping up our actions in relation to import controls, because rules must be respected, also by importers."

In von der Leyen's words, EU exports to Mercosur are expected to grow by almost EUR 50 billion by 2040 and Mercosur exports will in turn grow by up to EUR 9 billion.