The European Union and South American bloc Mercosur finalised a free trade agreement on Friday.
The pact between the EU and Mercosur aims to create one of the world’s largest free trade zones, covering more than 700 million people and nearly 25 per cent of global GDP. The agreement aims to reduce tariffs and trade barriers to make it easier for companies on both sides to export goods.
But the result of the EU-Mercosur talks is not the final outcome, as a number of EU member states, led by France, oppose the pact. Reuters emphasises that the agreement awaits “an uphill battle for approval in Europe.”
EC chairwoman Ursula von der Leyen said the treaty would have a positive effect on some 60,000 companies supplying goods to Mercosur countries. She said businesses would “benefit from lower tariffs, simplified customs procedures and favourable access to some critical raw materials,” which would create huge business opportunities. Von der Leyen also said the EC was acting in line with the concerns of European farmers. She said the treaty includes “robust measures to protect” their livelihoods.
The treaty has been 25 years in the making. The Mercosur member countries are Brazil, Argentina, Paraguay, Uruguay, Uruguay and Bolivia. Venezuela’s membership in the association has been suspended indefinitely.
On November 23, the Ukrainian state customs service reported that truck traffic was blocked in front of the Medyka-Shehyni checkpoint on the Polish-Ukrainian border. Polish farmers went on strike in front of the checkpoint. Among the reasons for the protest were concerns about the EU signing a free trade agreement with Mercosur, as well as the failure to fulfil the demand to keep the level of agricultural tax at the level of 2023.
