In view of the weekend’s busy news on trade relations with the United States (see other news), the signing of the free trade agreement between the EU and the Mercosur countries in Asunción (Paraguay) was no longer the leading trade topic for the European bubble on Monday 19 January.
Nevertheless, the event is of particular importance against a backdrop of attempts to diversify trade.
The EU/Mercosur agreement was given the green light by EU Member States on Friday 9 January, bringing to an end more than 25 years of negotiations (see EUROPE 13783/1).
In Paraguay, the President of the European Commission, Ursula von der Leyen, welcomed the creation of the “largest free trade area in the world” and said that the agreement “would be beneficial” for both blocs.
In response to criticism over the lack of reciprocity in health and environmental standards, the President maintained that the agreement included “an important chapter devoted to trade and sustainable development”. “We are committed to helping each other make the transition to climate neutrality a success”, she insisted.
On this point, the President of Uruguay, Yamandú Orsi, declared that “growth and environmental responsibility can go hand in hand”.
Geopolitical importance. The President of Paraguay, Santiago Peña, stressed the geopolitical importance of this agreement, welcoming it by saying, “In a global context marked by tensions, this breakthrough sends a clear signal in favour of international trade as a factor for cooperation and growth”.
He also acknowledged the major role played by Brazilian President Luis Ignacio Lula da Silva – who was not able to visit Paraguay in person – as “one of the key architects of this process”.
The President of Argentina, Javier Milei, praised the negotiating efforts of the Italian President, Giorgia Meloni, whose final support for the agreement has proven to be decisive (see EUROPE 13783/1).
He also called for “the spirit of the agreement to be respected”, stressing that the inclusion of “mechanisms restricting access, such as quotas, safeguards or measures of equivalent effect, will considerably reduce the economic impact of the agreement and compromise its key objective”.
He nevertheless indicated that Argentina would move ahead with the ratification process, submitting the draft law to the Argentine Congress for consideration.
The European Parliament has yet to give its opinion. On the EU side, the European Parliament still has to ratify the agreement. Before that, on Wednesday 21 January in Strasbourg, it will rule on a possible appeal to the European Court of Justice of the EU to examine the compatibility of the agreement with the EU Treaties (see EUROPE 13786/5). A vote in favour of the Court’s opinion would delay the ratification process by several months. Nevertheless, a controversial decision could be taken to apply the agreement provisionally (without waiting for the approval of MEPs) with Mercosur countries that have ratified the agreement (see EUROPE 13788/7).
With regard to the final support for ratification by the European Parliament – which will take place later this year – several sources spoke of a “potentially close” vote. This is without taking into account the fact that, according to our information, the large Spanish EPP delegation could consider doing a volte-face, arguing for more guarantees for Spanish farmers. (Original version in French by Pauline Denys)