Chancellor Friedrich Merz (CDU) and EU Commission President Ursula von der Leyen say there is a necessary majority among European states to sign the free trade agreement with the Mercosur states. It is “now certain that Mercosur can come into force after the approval of the Italian government,” said the Chancellor.
Although we are at the EU summit Brussels the request of Italian Prime Minister Giorgia Meloni to hold the signing planned for Saturday until January to postpone. “After 25 years, two weeks no longer matters,” he commented, alluding to the negotiations that have been going on for years.
Merz said he was not giving up hope that the French government might also agree. “But even if this is not the case, the qualified majority in the Council is secured.” Von der Leyen also said she was confident that the majority was now in place.
Merz had previously called for an agreement
Merz had already said in June that it was in the EU There are no longer any fundamental objections to the agreement. Then, at a summit in October, he accidentally announced an agreement at a press conference. “It’s done. It’s through,” he said. Shortly afterwards he was corrected by Council President António Costa.
At the start of the recent summit, he said that decisions had to be made if the European Union wanted to remain credible in trade policy around the world. “And the decision can only be that Europe agrees and that the President of the Commission and the President of the Council travel to South America tomorrow and sign this agreement.”
The fact that the fundamental agreement is still a long time coming is not seen as so dramatic in German government circles. There is indeed a shift. “But it seems pretty certain that it’s coming.”
Industry complains about stagnation
Numerous industrial sectors are pushing for the agreement and were disappointed by the postponement. “The world is not waiting for Europe and in Brussels the EU is failing to learn the lessons from it,” said the automotive industry association. The chemical industry said frustration was growing and a seemingly endless deadlock seemed to be continuing.
Brazil’s President Luiz Inácio Lula da Silva announced Meloni’s request for postponement at a Mercosur summit on Saturday submitted for decision. Lula had previously threatened to withdraw his country from the planned deal.
Representatives of EU countries and the European Parliament met on Wednesday additional protection clauses for agriculture in order to enable the conclusion of the agreement. Nevertheless, thousands of farmers demonstrated against the agreement in Brussels, some of the protests turned violent.
At the summit in Brussels, France emphasized that this was still the case you’re not readyto support the agreement. President Emmanuel Macron said that although the protective clauses had improved a lot, it was still not enough.
Largest free trade zone of its kind in the world
In order for the EU to conclude the agreement, at least 15 of the 27 EU states must agree in the Council of Member States. There is also the hurdle that together they make up at least 65 percent of the total population of the EU. The EU Commission concluded negotiations on the agreement last December despite criticism from countries such as France. If Italy agreed to the agreement, there would most likely be a sufficient majority.
The Mercosur agreement provides for the abolition of tariffs on around 91 percent of trade in goods between the EU and the Mercosur states. According to calculations by the EU Commission, European exports to South America could increase by up to 39 percent annually. The EU would mainly export industrial goods such as cars and chemical products, while the Mercosur countries mainly deliver agricultural products and raw materials.
According to the EU Commission, the new free trade zone with more than 700 million inhabitants would be the largest of its kind in the world and is also intended to send a signal against US President Donald Trump’s protectionist customs policy.
