The president of the European Commission, Ursula von der Leyenlanded in Uruguay to lead the final stages of negotiations for a historic trade agreement between the European Union and the South American bloc Mercosur. If finalized, this pact would create a transatlantic market of 700 million people, covering almost a quarter of world GDP. However, behind the diplomatic rhetoric, the path to final approval is full of internal obstacles and geopolitical tensions.
Von der Leyen was optimistic when she declared: “The finish line of the EU-Mercosur agreement is in sight. Let’s work together to cross it.”. His position contrasts with the strong opposition from countries like Francewhere the president Emmanuel Macronunder pressure from the influential agricultural sector, has described the agreement in its current state as “unacceptable.” The main concern of European farmers is that South American agricultural products, such as beef and sugar, compete on an unequal playing field due to less stringent environmental and labor standards.
Germany, on the other hand, has been one of the biggest defenders of the agreementgiven that its powerful automotive industry would benefit greatly from the reduction of tariffs to export vehicles to Latin America. This support reflects the fragmented nature of European interests: while some seek to expand their global economic influence, others fear domestic repercussions in sensitive sectors.
In 2019, a draft of the agreement was announcedbut negotiations have since faced multiple delays, largely due to disagreements over environmental issues and sustainability standards. European farmers, who already staged massive protests last year, have once again raised their voices, warning of the risks of allowing products that do not meet the EU’s strict standards.
Von der Leyen’s trip seems to indicate that technical issues have been resolvedleaving political decisions as the last obstacle to moving forward. However, even if he manages to close the agreement at the Mercosur summit in Uruguay, the process will not be complete. All 27 EU member states will have to ratify it, and any country could block it, putting years of negotiations at risk.
Von der Leyen faces a delicate balance: promoting a Europe more integrated in global trade, while responding to European citizens’ concerns about fairness and sustainability. In this challenge, His figure emerges as key in the attempt to overcome internal divisions and position the EU as a central actor in global trade.. However, the outcome of this agreement will not only depend on Brussels’ strategic vision, but also on its ability to allay internal fears that could torpedo this ambitious transatlantic alliance.
You may also be interested
Image gallery
