EU and Mercosur states sign trade agreement
A quarter of a century after the negotiations began, the EU and the Mercosur states of Brazil, Argentina, Paraguay and Uruguay have reached an agreement on a free-trade zone. The deal aims to boost trade by lowering customs duties and facilitating investments. France, Italy and Poland expressed reservations until the very end. Commentators are also at odds over the merits of the project.
A milestone in the construction of free-trade system
Mercosur is of strategic importance for Europe, Rzeczpospolita emphasises:
“The EU needs an agreement with Mercosur because it will strengthen its position in a world where two protectionist powers are vying for leadership: China and the US. As the largest exporter of goods and services, the EU must reach an understanding with like-minded countries and build up the architecture of a free trade system with them. But it also needs these trade relations because they lead to a rapprochement in other areas. In the agreement that has just been signed, for example, the Mercosur countries commit to not deviating from the Paris Agreement on the climate and to stopping deforestation.”
Subsidised farmers shouldn't complain
The taz can't understand why so many European farmers are against the agreement:
“The European Union is the world's largest exporter of agricultural and food products. In 2023 its exports in this sector amounted to 70 billion euros, far exceeding its imports. The Europeans are world champions when it comes to exporting cheese and pork. It's true that wages in Germany, for example, are higher than in Brazil. But South American farmers can only dream of EU-level agricultural subsidies: the Europeans provide 55 billion euros worth of support to their farmers per year. Those who subsidise and export so much should not complain about a few additional imports from Mercosur countries.”
Prioritise the environment instead of blindly trusting markets
Economist Maxime Combes outlines an alternative to the negotiated agreement in Le Monde:
“Strengthening our cultural, political, geopolitical and economic relations with the Mercosur countries does not require that we sell them cars and pesticides and buy their beef. A common, resolute and concerted effort to combat climate change, biodiversity loss and deforestation would be the better path to achieve this goal. Rather than entrusting our future to international markets, in today's world a social and environmental turnaround in the most polluting sectors would bring more dynamism and benefits.”
Stability and security
El País takes a positive view of the agreement:
“The EU's political message is clear. It wants to forge alliances in a world in which two of its major trading partners, the US and China, are becoming increasingly unreliable. ... For Brussels, the agreement is a means to counter China's growing influence in the Americas and gain better access to raw materials that are critical for its energy transition. ... It paves the way for the EU to strengthen its presence in an area that tends to be undervalued despite Spain's efforts. Those who oppose the agreement should take into account the fact that it has been concluded at a time when geopolitical tensions are running high and aims to offer stability and security to the EU and its citizens.”
A step towards Frexit?
This could further divide Europe, warns Le Quotidien:
“Quite apart from the agricultural issue, this is also another serious blow for the EU's image. ... The Mercosur agreement could leave its mark if some Europeans are not heeded. France is by far the continent's biggest agricultural power and will not allow this sector to be trampled on by others - even if they are its closest 'allies'. Once again, doubts will gradually spread among our neighbours. Frexit will continue to quietly creep into people's minds. ... We must be careful not to create a disaster of historic proportions.”