EU member states will be invited to vote on a major trade deal with four South American economies after the European Commission promised \u201crobust guarantees\u201d for farmers.<\/p>\n\n\n\n
The EU executive said the deal with the Mercosur bloc, which includes Argentina, Brazil, Paraguay, and Uruguay, will create a free trade area with a population of around 700 million, making it the largest in the world.<\/p>\n\n\n\n
France and Poland initially warned about the potential impact that cheaper goods and agricultural products could have on their farmers.<\/p>\n\n\n\n
However, French Trade Minister Laurent Saint-Martin said the guarantees proposed by the Commission were \u201ca step in the right direction.\u201d<\/p>\n\n\n\n
Supporters of the deal, led by Germany, say they aim to expand the EU\u2019s global trade partners following tariffs imposed by U.S. President Donald Trump.<\/p>\n\n\n\n
The text of the agreement, agreed in December last year after more than 25 years of preparation, requires the support of 15 of the 27 member states and the European Parliament for approval.<\/p>\n\n\n\n
Polish Prime Minister Donald Tusk said his government would oppose the deal but acknowledged it is likely to go through: \u201cIf it becomes a reality, we will not rest until these safeguard mechanisms are in place.\u201d<\/p>\n\n\n\n
However, Dirk Jandura, head of the German Federation for Wholesale, Foreign Trade and Services (BGA), said Europe must act quickly before other countries divide the region: \u201cIn times of global uncertainty, Europe needs new partnerships.\u201d<\/p>\n\n\n\n
European Commission President Ursula von der Leyen said that \u201cEU businesses and the EU agri-food sector will immediately benefit from lower tariffs and lower costs.\u201d<\/p>\n\n\n\n
In a post on X, she added that they had listened to farmers and member states and introduced \u201clegally binding\u201d guarantees to \u201cgive them confidence in supporting the deal.\u201d<\/p>\n\n\n\n
EU Trade Commissioner Maro\u0161 \u0160ef\u010dovi\u010d said the Commission hopes the agreement will be approved by the end of this year.<\/p>\n\n\n\n
Under the agreement, Mercosur countries will gradually remove tariffs on 91% of EU goods, including cars, chemicals, wine, and chocolate. Currently, cars face 35% tariffs, and the European Commission believes exports could rise to \u20ac49 billion per year.<\/p>\n\n\n\n
In return, the EU will allow Mercosur to export products such as meat, honey, sugar, and soybeans, as well as other goods, including critical minerals, with fewer restrictions.<\/p>\n\n\n\n
This influx is the main reason some EU countries are concerned that their domestic agricultural sector will be undermined by cheaper imports.<\/p>\n","protected":false},"featured_media":4578,"template":"","class_list":["post-4580","news-cu","type-news-cu","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"\n