What the historic free trade agreement between the EU and Mercosur provides for
The cartel creates a market of 700 million people, but the European Parliament could slow down the entry into force with motions for postponement and legal challenges
by Beda Romano
FROM OUR CORRESPONDENT
BRUSSELS - The historic partnership agreement between the European Union and the Mercosur has finally been signed in Assumption, the capital of Paraguay, after years of bilateral negotiations and weeks of European tug-of-war. Beyond the desire to promote relations between the two blocs, the agreement that in fact creates a new market of more than 700 million people is meant to be a response to the unilateral and protectionist US foreign policy. The gaze now runs to Strasbourg where the European Parliament will have to give its long-awaited approval.
"This is much more than a trade agreement," said European Commission President Ursula von der Leyen on Saturday 17 January. "Today we show the world that we are in favour of dialogue, of cooperation, of mutual benefit. In the economic, environmental, and geopolitical fields'. European Council President António Costa added from Assumption yesterday: 'Our agreement does not create spheres of influence, but spheres of shared prosperity'.
In the same spirit, the representatives of Mercosur (Brazil, Paraguay, Uruguay and Argentina) spoke. Brazilian Foreign Minister Mauro Vieira criticised 'unpredictability', 'protectionism' and 'coercion', in a clear reference to the Trump administration. The only one to break away somewhat was Argentine President Javier Milei, who hailed the recent downfall at American hands of Venezuelan President Nicolás Maduro - as well as thanking Italian Prime Minister Giorgia Meloni for her mediating role in the final phase of the negotiations.
The signing came after final uncertainties on the part of the Twenty-Seven (six countries preferred not to approve the agreement). Guarantees were adopted in particular in the agricultural sector (see Il Sole/24 Ore of 8 January). The treaty should stimulate relations between the two blocs. Today, Mercosur countries tend to trade with Brazil, the region's superpower. With the near-abolition of tariffs with the European Union, the member countries will become new privileged partners.
