The EU delays signing the Mercosur trade agreement

Due to strong protests by farmers and last-minute opposition from France and Italy, the EU has postponed the signing of the Mercosur agreement with South American countries. German businesses have strongly criticized the delay of the agreement. The German Automotive Association said it was "bad news" for them.

European Commission President von der Leyen said after a tense EU summit that the EU-Mercosur free trade agreement will not be signed as planned this Saturday, the 20th, but will be postponed until January next year.

President Lula of Brazil has been one of the most active advocates of the agreement. He had hoped to reach an agreement on Saturday to achieve a major diplomatic achievement before the elections next year. He warned, "If we don't sign now, Brazil will not sign any agreement during my presidency."

German Chancellor Merkel pushed for the signing of the agreement at the EU summit, but countries such as France and Italy opposed it. French President Macron said in Brussels, "We are not ready yet; the plan will not be implemented." He emphasized that the EU must never sacrifice the interests of farmers for the agreement. Italian Prime Minister Meloni also called for postponing the signing date to next year on Wednesday. Poland and Hungary have also expressed their opposition recently.

On Thursday, thousands of farmers held a demonstration in Brussels to protest the agreement. Police reported that about 7,300 people participated in the march, and nearly 1,000 tractors blocked roads in the city of Brussels. The demonstration was generally peaceful. However, a group of protesters burned car tires and threw potatoes, and the police used tear gas and high-pressure water cannons.

On Wednesday evening, the European Parliament and the EU Council reached an agreement on a regulation to protect farmers from competition by cheap South American products: if the import volume of products from Mercosur increases significantly and affects EU prices, the European Commission can reintroduce tariffs. But the protests on Thursday showed that these guarantees were still far from enough. Many European farmers accuse South American countries of not complying with the environmental and social regulations that European farmers must follow, which constitutes unfair competition, making their products cheaper.

The EU-Mercosur agreement aims to eliminate tariffs on 91% of goods traded between the two sides. According to calculations by the European Commission, EU exports to South America could increase by up to 39% annually as a result. European exports to South America include cars and chemical products, while Mercosur countries mainly supply agricultural products and raw materials.

German companies have strongly criticized the delay of the trade agreement between the EU and the four member states of Mercosur in South America. Hildegard Müller, president of the German Automotive Association (VDA), said that time is pressing, and "the EU automotive industry is more dependent than ever on improving market access in other countries outside the EU."

Sources: DW

Original: toutiao.com/article/1851991053372483/

Statement: This article represents the views of the author himself.