Brussels: EU ambassadors have given provisional approval to the signing of the bloc's largest ever free trade accord with South American group Mercosur, a significant milestone over 25 years in the making. This development comes after extensive negotiations and efforts to secure backing from key EU member states, as confirmed by three EU diplomats and sources.
According to Emirates News Agency, the European Commission, which concluded negotiations a year ago, along with countries such as Germany and Spain, view the deal as a crucial element in the EU's strategy to open new markets. This move aims to counterbalance business losses from US tariffs and reduce reliance on China by securing access to critical minerals.
However, the agreement has faced opposition, primarily from France, the EU's largest agricultural producer. Critics argue that the deal would lead to an influx of cheap food products, including beef, poultry, and sugar, which could undermine domestic farmers by undercutting prices.
The provisional approval was achieved after ambassadors from the EU's 27 member states indicated their governments' positions, with at least 15 countries representing 65% of the bloc's total population voting in favor, meeting the necessary threshold for approval. EU capitals have been given until 5 p.m. Brussels time (1600 GMT) to submit written confirmation of their votes.
This procedural step paves the way for European Commission President Ursula von der Leyen to potentially sign the agreement with Mercosur partners-Argentina, Brazil, Paraguay, and Uruguay-possibly as early as next week.