Montevideo, Uruguay, December 6, 2024 — After a quarter-century of on-again, off-again talks, a free trade agreement between the European Union and the Mercosur bloc of South American nations appears poised for final approval, despite fierce opposition from European farmers and, notably, France. The potential deal, which would create a combined market of 750 million people, has faced repeated setbacks over the past 25 years.
A Deal Decades in the Making
The EU-Mercosur agreement has been under negotiation for 25 years, facing numerous hurdles before a potential final approval.
- Negotiations between the EU and Mercosur began 25 years ago.
- A deal was initially reached in 2019 but stalled due to opposition, particularly from France.
- In December 2024, Ursula von der Leyen announced a breakthrough in negotiations.
- The agreement aims to create a market of 750 million consumers.
The path to this potential agreement has been anything but smooth. In 2019, a deal was tentatively struck, but France quickly led a rebellion, swaying several member states, including Germany, to oppose it. Crucially, the European Commission lacks the power to ratify such a treaty; that authority rests solely with the Member States and the European Parliament.
Recent Roadblocks and Renewed Hope
The possibility of an agreement resurfaced in December 2023, with Ursula von der Leyen expressing optimism. However, that hope was dashed at the last minute, again due to staunch opposition from French President Emmanuel Macron. Simultaneously, in Buenos Aires, the outgoing Argentine president opted to leave the finalization of the agreement to his newly elected successor, Javier Milei.
Fast forward to late 2024, and Ursula von der Leyen appears to have overcome Macron’s resistance. On December 6, 2024, she traveled to Montevideo, Uruguay, to announce that a common ground had finally been reached with Mercosur counterparts. This announcement signals a potential end to decades of negotiation and a significant step toward a major trade agreement.
What are the core countries involved in the Mercosur trade bloc? Mercosur consists of Argentina, Brazil, Paraguay, and Uruguay, representing a significant economic force in South America.
The agreement now faces a crucial vote from European states, with farmers voicing concerns about potential impacts on their livelihoods. The coming weeks will determine whether this long-awaited deal finally becomes a reality.
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