EU Mercosur Deal Ratification Push
- The EU-mercosur trade agreement is a comprehensive free trade deal between the European Union and the Mercosur trade bloc, comprising argentina, Brazil, Paraguay, and Uruguay.
- The deal is based on established global trade rules and seeks to foster economic growth and cooperation.
- despite being signed in December 2019, the EU-Mercosur agreement has yet to be ratified by all EU member states and the European Parliament.
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What is the EU-Mercosur Trade agreement?
The EU-mercosur trade agreement is a comprehensive free trade deal between the European Union and the Mercosur trade bloc, comprising argentina, Brazil, Paraguay, and Uruguay. Signed in December 2019 after decades of negotiation, it aims to eliminate or reduce tariffs on a wide range of goods and services traded between the two regions. The agreement encompasses a combined market of 780 million people, making it one of the largest trade deals ever negotiated by either side.
The deal is based on established global trade rules and seeks to foster economic growth and cooperation. It’s particularly significant in the context of recent trade tensions, notably those instigated by the Trump administration’s imposition of tariffs.
The Path to Ratification: Current Status
despite being signed in December 2019, the EU-Mercosur agreement has yet to be ratified by all EU member states and the European Parliament. The European Commission is now proposing ratification, sending a text to member states and the European Parliament for approval.
Ratification requires a qualified majority: 15 member states representing at least 65% of the EU population must approve the treaty. The European Parliament also needs to give its consent. Blocking the treaty requires at least four member states representing at least 35% of the EU population.
Why the Opposition? Concerns from Farmers and Member States
The agreement faces significant opposition, primarily from farming groups across Europe. The core concern revolves around the potential influx of cheaper agricultural products, particularly beef and poultry, from South America.These commodities are produced at lower costs in Mercosur countries, raising fears of market disruption and reduced profitability for European farmers.
Several member states have also expressed reservations. France, under President Emmanuel Macron, has insisted on sufficient