The European Commission (EC) announced on Friday that EC President Ursula von der Leyen has reached a political agreement on a free trade area with the common market of South American countries - MERCOSUR.
"This agreement is not just an economic opportunity; it is a political necessity. We are like-minded partners. We believe that openness and cooperation are the true engines of progress and prosperity. I know that strong winds are blowing in the opposite direction: towards isolation and fragmentation. But this agreement is our clear response. We stand together on the global stage as partners," the EC president stated at a press conference in Montevideo, the capital of Uruguay.
Von der Leyen's speech was broadcast by the EU's television service.
In its communiqué, the European Commission reported that the EC president concluded the final phase of negotiations on the EU-MERCOSUR agreement with the presidents of Brazil, Luiz Inácio Lula da Silva; Argentina, Javier Milei; Paraguay, Santiago Peña; and Uruguay, Luis Lacalle Pou.
According to the EC president, this agreement "will bring significant benefits to consumers and businesses on both sides."
She stated, "We listened to the concerns of our farmers and acted accordingly. This agreement includes robust guarantees to protect your livelihoods."
She emphasized that the EU-MERCOSUR agreement is "the largest in history concerning the protection of EU food and beverages," claiming it "will allow EU companies to save 4 billion euros in export duties annually."
Thus, the EC president believes that the European Union and MERCOSUR "are creating one of the largest trade and investment partnerships the world has ever seen." "We are removing barriers and facilitating investments. We are forming a market of over 700 million consumers," she declared.
The agreement with MERCOSUR must be approved by EU member states and receive the endorsement of the European Parliament.
This arrangement comes at a time when agricultural producers in several EU countries are deeply concerned about the expected influx of cheap, duty-free agricultural products from South America.
Among the EU countries particularly vocal against the MERCOSUR agreement is France. President Emmanuel Macron stated the day before that such an agreement in its current form is unacceptable for the French agri-food sector. French media noted that von der Leyen timed her visit to Uruguay to coincide with days of government crisis in France, when Michel Barnier's cabinet was dismissed following a vote of no confidence in the National Assembly.
Opposition to the free trade zone with MERCOSUR is also strong among major agricultural producing countries like Italy and Poland. Protests against the agreement continue to be voiced by agricultural producers in Belgium and the Netherlands.