European Commission President Ursula von der Leyen has celebrated the Mercosur trade agreement as a “win-win deal.”Earlier, the European Union and South American nations finalized a free trade treaty.
Ms. Von der Leyen, who visited Uruguay to finalize the long-awaited agreement, referred to it as “a win for Europe.”
She characterized the agreement, which has been nearly 25 years in the making, as “a significant historical milestone” that forges trade connections at a time when “strong winds are blowing in the opposite direction, towards isolation and fragmentation.”
Spanish Prime Minister Pedro Sanchez described the conclusion of the contentious free-trade agreement as “a landmark agreement.”
“Today, the European Union has reached a historic agreement with Mercosur to create an unprecedented economic link between Europe and Latin America,” he posted on X.
“Today, the European Union has achieved a historic agreement with Mercosur to establish an unprecedented economic bridge between Europe and Latin America.
Spain will work diligently to ensure this agreement is approved by the Council, because openness in trade with our Latin American partners is vital…”
— Pedro Sánchez (@sanchezcastejon) December 6, 2024
Nevertheless, French President Emmanuel Macron reiterated his warning to Ms. von der Leyen that the current state of the agreement is “unacceptable.”
Poland has allied with France, and Italian government sources have indicated that Rome believes “the conditions are not met” to support the deal. The Netherlands and Austria have also raised concerns.
Conversely, Germany, eager to expand trade prospects amidst a downturn in its manufacturing industry, has vocally endorsed the deal, as has Spain.
Delegates participate in the Mercosur Summit in Montevideo, Uruguay.
Ms. Von der Leyen arrived just hours after the collapse of President Emmanuel Macron’s government following a no-confidence vote in parliament regarding efforts to control France’s budget deficit, leaving Mr. Macron in search of a new prime minister.
The deal, which has been two decades in the making and deeply polarizing within Europe—where farmers and French interests have been its most vocal detractors—aims to establish one of the world’s largest trade partnerships, boosting the trade of beef and grains.
Mercosur, which includes agricultural giants Brazil, Argentina, Uruguay, and Paraguay, is hosting a planned summit in Montevideo.
Irish farmers protesting against the Mercosur trade deal
With just days into her second term, Ms. Von der Leyen faces significant domestic opposition to the deal, which represents the largest agreement struck by the EU in terms of tariff reductions.
Both member states and the European Parliament are required to ratify the agreement.
European farmers, including those from Ireland, have consistently protested, arguing that it will lead to an influx of inexpensive South American commodities, particularly beef, which do not meet the same environmental and food safety standards as in the EU.
Read more: The Mercosur trade deal: all you need to know
Message to EU farmers
The preliminary framework for a deal was established back in 2019 but was never ratified due to concerns regarding Brazilian farming’s impact on climate change, among other issues.
Ms. von der Leyen acknowledged these concerns, stating: “The EU-Mercosur agreement demonstrates our unwavering commitment to the Paris Agreement (for combating climate change) and the fight against deforestation.”
She welcomed the actions taken by Brazilian President Luiz Inacio Lula da Silva’s administration to protect the Amazon, emphasizing that “preserving the Amazon is a collective responsibility of all humanity.”
The European Commission President addressed European farmers, stating, “We have heard you, acknowledged your concerns, and are responding to them.”
“This agreement contains strong safeguards to protect your livelihoods.”
Upon ratification, the deal would facilitate easier EU exports of cars, machinery, and pharmaceutical products to South America.
In exchange, Brazil and its neighboring countries would gain the ability to sell meat, sugar, rice, honey, soybeans, and various other products to Europe with fewer restrictions.
The treaty aims to eliminate most import duties between the EU and Mercosur, creating a comprehensive free-trade zone encompassing over 700 million consumers.
Sources familiar with the negotiations indicated that the deal would include amendments to “several chapters,” covering government contracts, services, intellectual property, and environmental regulations.
IFA expresses ‘huge’ concerns regarding the Mercosur deal
Francie Gorman, President of the Irish Farmers Association, expressed having “huge concerns” about the Mercosur deal, uncertain if there is enough support in Europe for its approval.
While speaking on RTÉ’s Today with Claire Byrne, he noted that leaders from Fianna Fáil, Fine Gael, and Sinn Féin signaled their opposition to the deal.
“Now is the time for them to demonstrate their support for rural Ireland,” he asserted. “A week post-election, is it credible for them to turn their backs on rural Ireland?”
“This issue extends beyond just beef and poultry farmers; it concerns the overall economic activity in rural Ireland and the subsequent impacts,” Mr. Gorman explained.
He emphasized that while every trade deal has winners and losers, agriculture “should not be the sacrificial lamb.”
There are significant worries regarding Brazilian agencies’ ability to ensure that their beef is sourced from hormone-free livestock and from land that has not been deforested.
Furthermore, Declan Hanrahan, Chair of the IFA’s National Livestock Committee, commented that the Mercosur deal could jeopardize crucial markets.
During his appearance on RTÉ’s Morning Ireland, Mr. Hanrahan stated that the standards and traceability protocols in Europe “do not exist” in Brazil and the Mercosur nations.
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He warned that the deal would introduce 100,000 tonnes of cheaper beef into the European market, which could have a “devastating effect” on Irish and European farmers.
“The paramount issue is the regulation and traceability, which is lacking for the beef imported from Brazil,” he noted.
“Brazil cannot match the standards upheld in Ireland and across Europe,” he added.
On the same program, Fine Gael MEP Sean Kelly agreed there are valid concerns regarding the Mercosur deal’s implications for agriculture.
He stated that while there would be assurances regarding sustainability, Brazil “is as large as Europe.”
“We must also consider Argentina, Paraguay, Uruguay, and Bolivia’s involvement,” he added. “How can verification be achieved? That will be a crucial aspect, as I do not believe it is realistically possible.”
Mr. Kelly indicated that his inclination at this moment is to vote against the deal, but he would wait to hear Ms. von der Leyen’s perspective.
He emphasized that if the agreement would result in a “devastating impact” on the Irish beef industry, he would be unable to support it, although he intends to assess it in a “practical and logical fashion.”
“Currently, I am leaning towards voting against it,” he concluded.
