EU votes in favor of creating worlds largest free-trade area with Mercosur

Representatives of the European Union’s (EU) member states voted in Brussels on Friday in favor of a free trade agreement with the Mercosur bloc, formed by Argentina, Brazil, Paraguay and Uruguay. A majority of the EU’s 27 states greenlit the deal after 26 years of negotiations. This paves the way for the creation of the world’s largest free-trade area, comprising more than 715 million inhabitants (447 million in the EU and 270 million in Mercosur). European Commission President Ursula von der Leyen is expected to travel to Asunción on Monday to sign the treaty. Paraguay currently holds the pro tempore presidency of the South American bloc. However, the trade accord will then have to be ratified by all the national parliaments of EU and Mercosur members to enter into force in each country. The EU’s ambassador to Argentina, Erik Høeg, said that “in an context marked by growing geopolitical tensions, the EU and Mercosur are choosing intelligent integration based on rules, mutual trust, and complementarity.” He added that the EU “celebrates” the deal. Supportive states, led by Germany and Spain, have long argued the agreement will open access to new markets; the deal’s opponents, led by France, warned it would expose EU farmers to unfair competition from Latin American agricultural imports. France, Hungary, Ireland, Poland and Austria voted against the agreement with Mercosur. However, they were not able to muster the “blocking minority” — representing 35% or more of the bloc’s population — needed to stop the deal. The key to the approval, according to observers, was the support of Italy. Back in December, Italian Prime Minister Giorgia Meloni had wavered and delayed the vote, but today supported the agreement after the EU agreed more measures to support European farmers. A massive protest, with farmers blocking roads, was held in Brussels ahead of the vote. Tractor convoys also disrupted traffic across Belgium, France and Greece. Many EU farmers see the deal with Mercosur as unfair competition that will affect rural livelihoods. They also argue it will threaten food standards. Opposition to the deal Leaders from France, Hungary, and Ireland announced on Thursday that they would vote against the deal. French President Emmanuel Macron said that despite concessions secured during the negotiations over the accord, there was still “unanimous political rejection of the agreement” in France. Hungary’s Foreign Minister Péter Szijjártó said the deal would “open Europe to unlimited imports of South American agricultural products at the expense of the livelihoods of Hungarian farmers.”  However, the countries who opposed the deal on Friday did not represent a “blocking minority,” which would have required at least four EU member states representing at least 35% of the population.  While five countries opposed the deal, their combined populations represent only around 29% of the EU’s population. The vote in the European Commission was originally expected in December, but it was postponed after support from Italy wavered. Italy has a population of 59 million, and its opposition would have been enough to form a blocking minority. It voted in favor on Friday.