Mercosur and the EU agree on historic trade agreement

France points out that the conditions are unacceptable // Javier Milei and Lula da Silva express contrary positions on the regional bloc

▲ The official photo of the Mercosur meeting was taken without the presence of the ruler of Brazil, Luiz Inácio Lula da Silva. From left to right: the presidents of Panama, José Raúl Mulino Quintero; from Bolivia, Luis Arce, the Argentine Javier Milei, the Uruguayan Luis Lacalle Pou and the Paraguayan president Santiago Peña.Photo Ap

Prensa Latina, Xinhua, Sputnik, Afp and Reuters

La Jornada Newspaper
Saturday, December 7, 2024, p. 17

Montevideo. The European Union (EU) and the Southern Common Market (Mercosur) yesterday sealed a historic trade agreement, after more than two decades of negotiations, which will allow the creation of one of the largest free trade zones in the world, despite that the agreed conditions remain unacceptable for French President Emmanuel Macron.

At the summit, the Argentine president, Javier Milei, stated that the bloc became a prison and must be renovated as soon as possible without ideological blinders.

At the summit, the Argentine president Javier Milei and his Brazilian counterpart, Luiz Inácio Lula da Silva, had conflicting ideas. Milei stated that the block became a prison and must be renovated as soon as possible without ideological blinders.

He added that during his presidency pro-tempore The possibility of creating a regime of greater flexibility and commercial autonomy for the members will be explored. so that everyone can enter into agreements that are convenient for them.

In contrast, Lula da Silva replied that A strong and united Mercosur is a Mercosur interconnected with South America and with the major issues on the global agenda.In addition to talking about gender equality, social justice and the fight against racism.

The Mercosur-EU agreement was celebrated in Montevideo, with the presence of the president of the European Commission, Ursula von der Leyen, and the leaders of Argentina, Uruguay, Paraguay and Brazil, founders of the South American bloc, after 25 years of negotiations. It is a historic treaty for the region, to the extent that it generates a free trade zone of more than 700 million inhabitants.he highlighted.

We managed to preserve our interests in government purchases, which will allow us to implement public policies in areas such as health, family agriculture, science and technology.said Lula.

In Europe, Spain and Germany promoted the agreement, while France, Italy, Poland, Austria and the Netherlands oppose it.

The Spanish president, Pedro Sánchez, pointed out that commercial opening will make everyone more prosperous and stronger and described the fact as historical. Instead, Macron stated that the agreement not signed or ratified and that Von der Leyen’s announcement has no no legal effect; He reiterated that the project is “unacceptable in its current state. We will continue to tirelessly defend our agricultural sovereigntyadded the French presidency.

Protest announced in Brussels

French farmers announced that will harden their demonstrations against the free trade agreement with Mercosur, while EU agricultural unions called for a protest in Brussels for Monday. If this agreement is adopted by member states and the European Parliament, it will have profound consequences for agriculture across Europe.the farmers warned, as they consider that they will have to compete under inferior conditions.

Part of the differences are the environmental and social demands that Europe demands, such as limits on the use of transgenic seeds and deforestation, which in South America – in recent decades – have been common practices linked to the advancement of agricultural production.

European non-governmental organizations and left-wing activists claim that this project would accelerate the deforestation of the Amazon and worsen the climate crisis. Greenpeace denounced that the text is disastrous for the environment.

On the other hand, South American rural producers and exporters showed enthusiasm for entering the gigantic European market, but fear that environmental clauses and opposition from some countries will limit trade.

Now, the document must be translated, legalized and endorsed by the member countries of each bloc, a process that could take 18 to 24 months before it comes into force. The EU exports inputs for the transportation sector, pharmaceutical products and automobile parts to Mercosur, which together represent 35 percent of the total exported value.

Founded in 1991, Mercosur is the world’s fifth-largest economic bloc and exports livestock and feed, oil products and minerals to the EU (70 percent of the total value of European imports from that region). Venezuela – currently suspended – is also part of Mercosur and Bolivia joined this year.

The Brazilian head of state, Lula da Silva, was not present in the official photograph of the Mercosur members, who commented on scheduling problems and was absent. However, the now president pro tempore of Mercosur, Javier Milei, decided not to be on the official graph of the G-20, last November, whose headquarters was Brasilia, due to his known antagonism with the host of that summit.