Mercosur: Ursula von der Leyen announces a free trade agreement, France continues to oppose
A “victory for Europe” according to the President of the European Commission. Visiting Montevideo, Uruguay, for a summit of the Southern Common Market (Mercosur), Ursula von der Leyen signed the first highlight of her second term at the head of the European executive. “We have concluded the negotiations for the EU-Mercosur agreement. This is the start of a new story. I am now looking forward to discussing it with European countries,” the 66-year-old German said at a joint press conference with the presidents of Argentina, Brazil, Paraguay and Uruguay.
An agreement despite opposition from France
In her desire to conclude this trade agreement, discussions of which have lasted for 25 years, Ursula von der Leyen chose to ignore the accession of France, the second economic power in the European Union and the continent’s leading agriculture. Because during his visit to Latin America in mid-November, Emmanuel Macron nevertheless affirmed that “France would not sign as is”, fearing unfair competition from Latin American agricultural products.
This agreement would provide unprecedented access to a market of 270 million consumers for European companies, whose products are currently heavily taxed upon entering the South American free trade zone. The Mercosur countries would buy cars, medicines, chemicals or machine tools manufactured in Europe, while the Old Continent would open its doors to imports of soya and beef, particularly from Brazil.
A prospect that worries French farmers, in particular cattle breeders, but also their parliamentarians. On Tuesday, November 26, the French National Assembly overwhelmingly rejected the agreement in a symbolic vote.
Towards a blocking minority?
“Today is clearly not the end of the story. What is happening in Montevideo is not a signing of the agreement, but simply the political conclusion of the negotiation. This only commits the Commission, not the Member States,” declared Sophie Primas, Minister Delegate for Foreign Trade, who has now resigned, following the announcement of the end of the negotiations.
Once the technical details have been finalized and the text translated into all the languages of the countries concerned, the agreement will still have to go through the voting stage in the European Council, the body bringing together the 27 member states of the Union. To be adopted, it will need to obtain a qualified majority: the approval of at least 15 countries representing 65% of the EU population.
It is at this stage that France wants to go all out. By allying itself with other countries hostile to the agreement, it aims to form a blocking minority made up of at least four countries representing 35% of the European population. For now, Paris is still looking for allies. She looks towards Poland, which has expressed reservations. Italy could also join this front of obstruction: government sources told the newspaper La Stampa, on December 6, that “the conditions (were) not met” to sign the agreement as it stands.
With France, Italy and Poland, the threshold of 35% of the European population would be crossed. It remains to find a fourth ally. In recent months, Austria and the Netherlands have also expressed reluctance. Weakened on the national scene, Emmanuel Macron could demonstrate that the voice of France continues to carry weight in the world.
