Filenews 6 December 2024
European Commission President Ursula von der Leyen has been in Montevideo, Uruguay, since Thursday for the EU summit with Mercosur countries (Brazil, Argentina, Uruguay, Paraguay, Bolivia).
Mercosur sources have said the free trade deal - covering an area of about 750 million people - has been finalised and will be announced on Friday by Mercosur heads of state and von der Leyen after both sides were able to work out the final details on environmental issues and state markets.
"Everything went as we expected. We have reached an agreement that satisfies both sides," one of the sources said.
The signing of the agreement (which has been under negotiation since 1999) does not mean its implementation. Ratification requires approval by the European Parliament, the European Council and the parliaments of the 27 Member States.
France and Poland are fiercely opposed to the deal, fearing unfair competition for their agricultural production. Germany and Spain are considered pillars of the agreement, which expect to increase exports of cars and machinery to Latin American countries, with zero or reduced tariffs.
The President of the European Commission said on Thursday that "this is the largest trade and investment partnership the world has ever seen. Both regions will benefit."
