Mercosur finalizes EU trade deal, eyes UAE pact

In a significant development, MERCOSUR bloc countries celebrated finalizing a long-awaited free trade agreement with the European Union, while simultaneously pursuing new trade opportunities with Panama and the United Arab Emirates. The announcement came during a summit in Montevideo, where leaders of the South American trade bloc gathered.

Brazilian President Luiz Inacio Lula da Silva highlighted that negotiations with the UAE are progressing rapidly and could be concluded by 2025. He emphasized that the EU agreement includes modern provisions recognizing MERCOSUR's environmental credentials and reinforces commitment to the Paris Agreement on climate change.

However, the EU-MERCOSUR deal faces substantial hurdles in Europe, particularly from France. The agreement requires approval from 15 of the 27 EU member states, representing 65% of the EU population, plus a simple majority in the European Parliament. French Trade Minister Sophie Primas distanced her country from European Commission President von der Leyen's announcement, indicating continued opposition.

European farmers' organization Copa-Coge has announced protests in Brussels, citing concerns about unfair competition and differing product standards.

MERCOSUR, comprising Brazil, Argentina, Paraguay, Uruguay, and newly-joined Bolivia (with Venezuela's membership suspended), is showing ambitions for global trade expansion. Uruguayan President Luis Lacalle Pou expressed interest in pursuing a separate trade deal with China, emphasizing his country's desire for greater international economic integration.

Brazil, as the largest MERCOSUR member by territory, population, and economic output, appears to be taking a leading role in these trade negotiations, with Lula da Silva actively promoting the bloc's international trade agenda.