The President of the European Commission, Ursula von der Leyen, arrives in Uruguay this Thursday (5) to participate in the Mercosur meeting and try to conclude a long-desired trade agreement between the countries of the European Union and the main economies of Latin America.
Technical talks are underway with Argentina, Brazil, Uruguay and Paraguay about what would be the largest trade agreement ever concluded by the European bloc.
“We can already see the finish line of the EU-Mercosur agreement,” said von der Leyen in a post on X. “Let’s work, let’s cross it.”
Von der Leyen’s decision to participate in the meeting in Montevideo, which begins this Thursday (5), is a sign that negotiators consider an agreement on the pact likely, according to people familiar with the matter.
The trade deal would reduce tariffs on most European Union exports to some of Latin America’s largest economies, while opening the European market to imports, including agricultural products. Furthermore, it would reinforce the European presence in a region where China has made inroads in recent years.
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It will be particularly important for car exporters, who will see the current 35% customs duties gradually phased out over the next few years. High taxes on other industrial products such as car parts, machinery, chemicals, clothing and textiles will also be eliminated.
The agreement, which would create an integrated market of 780 million consumers, still faces a very difficult ratification process, as the main member states of the European Union, notably France and Poland, oppose the agreement due to pressure from agricultural sectors. concerned with environmental and regulatory issues.
The long-delayed Mercosur trade pact was agreed in principle in 2019 but has since been questioned, mainly by French objections. If a deal is reached soon, it will come at a difficult time for French President Emmanuel Macron, who is dealing with the collapse of his government.
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Germany, which represents around a fifth of the EU’s population, is a strong supporter of the deal, along with Spain. Brazil is among the Latin American nations that are putting the most pressure for this agreement to be reached.
“What we want is to conclude the negotiations this year,” said Maurício Lyrio, secretary of the Brazilian Ministry of Foreign Affairs who leads negotiations with the EU. “What I can say is that we are hopeful.”
