EU countries override France to greenlight Mercosur trade deal

"German Chancellor Friedrich Merz hailed the agreement. "The approval of the EU-Mercosur Agreement is a milestone in European trade policy and an important signal of our strategic sovereignty and capacity to act," the German leader said. But the European Commission, which negotiated the text, failed to win over all of the bloc's member states. Key power France, where politicians across the divide are up in arms against a deal attacked as an assault on the country's influential farming sector, led an ultimately unsuccessful push to sink it. Ireland, Poland, Hungary and Austria also voted against the accord. But that was not enough to block it, after Italy, which had demanded and obtained a last-minute delay in December, threw its weight behind the pact."

"The deal will create a vast market of more than 700 million people, making it one of the world's largest free trade areas. Part of a broader push to diversify trade in the face of US tariffs, it will bring the 27-nation EU closer together with Brazil, Paraguay, Argentina and Uruguay, removing import tariffs on more than 90 percent of products. This will save EU businesses four billion euros ($4.6 billion) worth of duties per year and help exports of vehicles, machinery, wines and spirits to Latin America, according to the EU. It will also help the bloc reduce its dependency on China for critical raw materials, said Agathe Demarais, of the European Council on Foreign Relations, a think tank."

A majority of EU member states backed the EU–Mercosur pact at an ambassadors' meeting, clearing the way for signing in Paraguay next week. The agreement, over 25 years in negotiation, aims to boost exports, support Europe's struggling economy and strengthen diplomatic ties. Germany welcomed the deal as a milestone for trade policy and strategic sovereignty. Several member states—including France, Ireland, Poland, Hungary and Austria—opposed the text over farming and other concerns, but Italy's support tipped the balance. The pact will remove tariffs on over 90 percent of products across a market exceeding 700 million people, saving about €4 billion yearly.

Read at The Local France