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Europe Daily Bulletin No. 13341
EUROPEAN COUNCIL / Mercosur

European leaders continue to be divided over fate of EU-Mercosur agreement

Several European leaders were questioned about their current view of the discussions on the EU-Mercosur free trade agreement (FTA) at the European summit in Brussels on 1 February, at a time when this unfinalised agreement has become a lightning rod for the anger of farmers, a delegation of whom demonstrated violently outside the European Parliament on the same day (see other news)

Divisions remain between supporters and detractors of the agreement. For the Spanish Prime Minister, Pedro Sánchez, and the German Chancellor, Olaf Scholz, trade negotiations must not be halted. “I am in favour of FTAs and the one with Mercosur [...] Trade policy is of strategic importance”, said the German Chancellor, without saying whether talks could be concluded soon. 

The European Commission has indicated that the conditions were not in place to conclude talks at this stage (see EUROPE 13339/9)

French President Emmanuel Macron reiterated his firm opposition to the finalisation of the agreement. “Mirror clauses must be introduced. Our rules must apply externally. It’s simple, it’s common sense, but we don’t do it enough”, he said. 

He also welcomed the fact that discussions had been “suspended” between the negotiating teams. This is not the case, however, according to the European Commission, which assures us that trade is continuing between the two blocs.

The Irish Prime Minister, Leo Varadkar, echoed Mr Macron’s comments by opposing the conclusion of the agreement as things stand. “We can’t have a situation where we impose environmental rules on our farmers and then import from countries that don’t have those rules”, he said. 

Even the Belgian Prime Minister, Alexander De Croo, who is usually favourable to FTAs, has been cautious about the EU-Mercosur agreement. “Trade is a good thing, but there has to be a level playing field”, he said. 

On the sidelines of the European summit, several environmental organisations called for a halt to the trade negotiations. “The FTAs have pushed farmers towards export-oriented production, with prices that do not cover production costs and policies that favour the big industrial players”, said Morgan Ody, a farmer and member of the European Coordination Via Campesina.

When thousands of farmers across Europe are demonstrating against unfair FTAs, when this fight is supported by environmentalists and a large section of civil society, how can the European Commission put the economic interests of big business above our common well-being?” asked Julie Zalcman, from Friends of the Earth Europe. (Original version in French by Léa Marchal with the editorial staff)

Contents

EUROPEAN COUNCIL
ECONOMY - FINANCE - BUSINESS
SECTORAL POLICIES
EXTERNAL ACTION
SOCIAL AFFAIRS - EMPLOYMENT
FUNDAMENTAL RIGHTS - SOCIETAL ISSUES
COURT OF JUSTICE OF THE EU
INSTITUTIONAL
NEWS BRIEFS