On January 9, German Chancellor Merkel posted on the social media platform X, expressing her welcome for the EU's free trade agreement with the Southern Common Market (MERCOSUR).
Merkel wrote, "The EU's signing of a free trade agreement with MERCOSUR is an important milestone in European trade policy and a strong demonstration of our strategic sovereignty and operational capacity. This is beneficial for Germany and Europe. However, the 25-year negotiation process was too long - we need to accelerate the pace."
Merkel's support for the EU-MERCOSUR trade agreement stems from its strategic value for German industrial exports and its key role in geopolitical competition, but this position has also intensified the conflict between agricultural and industrial countries within the EU.
Merkel views the EU-MERCOSUR free trade agreement as a "strategic necessity" for Germany and Europe. After 26 years of negotiations, the agreement will eliminate more than 90% of tariffs between the two sides, covering 770 million people, creating one of the world's largest free trade zones. For Germany, the core interests are as follows:
Expansion of industrial exports: The agreement is expected to increase EU exports to MERCOSUR by 39%, with German automobiles (tariffs dropping from 35% to 0%), machinery and chemical products benefiting directly. MERCOSUR countries have pledged to open up markets for key minerals such as lithium, which helps Germany reduce its reliance on Chinese raw materials.
Counteracting U.S. pressure: Merkel has repeatedly emphasized that the agreement is a signal to the United States of "European independence." In the context of the U.S. promoting trade protectionism and imposing steel and aluminum tariffs on the EU, developing the South American market has become a key option for Germany's economic security.
Merkel played a key role in the implementation of the agreement. In addition to economic interests, her proactive attitude reflects her ambition to reshape the European trade system:
Reducing dependence on China and the U.S.: The simultaneous negotiations between the EU and MERCOSUR, Mexico aim to build a "third pole" trade network. The agreement text explicitly lists reducing "dependence on Chinese critical mineral resources" as a goal.
Global rule-making influence: In the context of the U.S. shifting towards protectionism and China deepening cooperation in South America, the agreement is packaged as a benchmark for the EU's "defending free trade." However, Brazil criticized the EU's agricultural quota mechanism as "contrary to the spirit of free trade," highlighting the struggle for rule dominance.
Original: toutiao.com/article/1853859834754112/
Statement: This article represents the personal views of the author.