The EU Commission signed off on a major trade deal with South American bloc Mercosur on Wednesday.
The deal must now be approved by at least 15 of the European Union’s 27 member states in order to go into effect.
Talks with Mercosur began in 1999 and have stalled several times.
Separately, the Commission also approved a trade deal with Mexico.
In a post on the platform X, EU Commission President Ursula von der Leyen referred to the two deals as “milestones,” adding that the EU was doubling down on the “diversification” of it strade ties.
What is the deal between the EU and Mercosur?
The Mercosur bloc encompasses Brazil, Argentina, Bolivia, Paraguay and Uruguay.
The agreement would see Mercosur members progressively remove tariffs on 91% of EU imports, including cars, machinery and pharmaceuticals.
In turn, the five South American countries would be able to sell agricultural goods to the EU with fewer restrictions.
The agricultural sector in EU countries has often voiced opposition to the deal, arguing they would be exposed to unfair competition from abroad.
On Wednesday, French government spokeswoman Sophie Primas said the commission had “heard the reservations” of several countries.
France is a major agricultural producer within the EU that has often expressed reservations on the Mercosur agreement.
What did the EU Commission say about the deals with Mercosur and Mexico?
In its statement, the Commission stressed the potential economic benefits to the bloc.
“EU businesses and the EU agrifood sector will immediately reap the benefits of lower tariffs and lower costs, contributing to economic growth,” von der Leyen was quoted as saying.
The Commission said that “full and comprehensive protection for all EU sensitivities in the agricultural sector” and sensitive products will be further shielded from “any harmful surge in imports” by “robust safeguards”.
As for the deal with Mexico, the Commission stressed that the country is “the EU’s longest standing trading partners and second biggest trading partner in Latin America” and pointed to the fact that it is a “a net food importing country, therefore the agreement will strongly benefit EU agriculture exporters.”
In July, Mercosur signed a trade deal with the European Free Trade Association (EFTA), which is made up of Switzerland, Norway, Liechtenstein and Iceland, all of which maintain strong trade ties to EU states but are not members of the bloc.
Edited by: Jenipher Camino Gonzalez
