EU’s long-delayed Mercosur trade deal is moving forward, despite protests from farmers and political fights. Mercosur, formed in 1991, is South America’s biggest trade bloc.
The EU has announced it will provisional apply its trade agreement with Mercosur countries after ratification by Argentina and Uruguay, despite opposition from some EU states and pending European Parliament approval. The move aims to diversify trade amid global upheaval, with France strongly opposing the deal due to concerns over its farmers.
The EU has triggered the start of the EU-Mercosur free trade agreement, after Paraguay ratified it. The deal, which links over 700 million people and 25% of global GDP, faces legal challenges in the EU but is expected to begin trade in May. The agreement aims to reduce EU dependence on China and the US.
European Commission President Ursula von der Leyen announced the signing of an eight-year trade agreement with Australia, aimed at diversifying supply chains, reducing dependence on China, and boosting exports. The deal includes tariff reductions, critical mineral cooperation, and enhanced defense ties, with some contentious issues still unresolved.
The EU-Council has provisionally applied the EU-Mercosur trade deal while the EU Court reviews its legality. The accord aims to create a $22 trillion trans-Atlantic market and boost exports, but faces opposition from farmers and environmentalists. Negotiators say the agreement will gradually remove tariffs and safeguard sensitive sectors; implementation could take up to a decade.