EU govt chief jets in to finalise EU-Mercosur commerce deal

(Reuters) – European Fee President Ursula von der Leyen touched down in Latin America on Thursday to finalise a long-delayed commerce deal between the European Union and the South American Mercosur bloc.

“The end line of the EU-Mercosur settlement is in sight. Let’s work, let’s cross it. The most important commerce and funding partnership the world has ever seen. Each areas will profit,” von der Leyen mentioned in a put up on X.

Mercosur will meet in Montevideo on Thursday amid indicators the bloc of Argentina, Brazil, Paraguay and Uruguay will use the occasion to announce an settlement on the commerce deal, which might be the biggest struck by the European Union by way of tariffs reductions.

Von der Leyen, travelling simply days into her second time period in workplace, faces opposition to the EU-Mercosur deal at house.

European farmers have repeatedly protested in opposition to the deal, complaining it should result in low-cost imports of South American commodities, notably beef, that’s not topic to the identical inexperienced and meals security requirements as within the European Union.

France has been essentially the most vociferous critic of the proposed settlement, however is distracted by a political disaster after the collapse of French Prime Minister Michel Barnier’s short-lived authorities.

Nonetheless, different EU members comparable to Germany insist the EU-Mercosur deal is significant for the bloc because it seems to diversify its commerce after the near-closure of the Russian market and discomfort about its reliance on China.

In addition they see Mercosur as a probably dependable supply of vital minerals, comparable to lithium, required for its inexperienced transition.

EU international locations as a complete and the European Parliament must approve any commerce deal agreed.