Reference News Network, January 11 report: According to the Spanish "Público" website, on January 9, representatives of the 27 EU countries voted to approve a free trade agreement with the Southern Common Market (MERCOSUR). Italy's support unlocked this agreement with Brazil, Argentina, Uruguay and Paraguay, which will become the largest trade agreement ever concluded by the EU. After the European Parliament strengthened safeguards, and the European Commission proposed pre-paying farmers' aid funds from 2028 (up to 45 billion euros to assist farmers and rural communities) and lowering import tariffs on European fertilizers, the Italian government eventually made concessions. The agreement still needs approval from the European Parliament before it can take effect.

France, Ireland, Austria, Poland and Hungary voted against the agreement. The agreement requires specific majority support to pass, meaning at least 15 countries representing more than 65% of the EU population must vote in favor. Belgium cast an abstention vote.

After obtaining the approval of the 27 EU countries, President of the European Commission Ursula von der Leyen and President of the European Council António Costa will visit Paraguay on January 17 to sign the agreement on behalf of the EU. The European Parliament also needs to (in April or May) approve the agreement, but due to the opposition of extreme factions to this agreement with MERCOSUR, the approval process may become complicated. The agreement can come into provisional effect after being approved by at least one MERCOSUR member state.

The report pointed out that, in the turbulent geopolitical landscape following the U.S. military action against Venezuelan President Maduro, Europe has completed a key alliance. Since the first trade tensions emerged during US President Trump's second term, diversifying trade alliances has been one of Brussels' top priorities. The agreement with MERCOSUR took 26 years to finally be finalized, and the EU executive had originally planned to sign the agreement last December. However, France's opposition and concerns from member states such as Italy forced its approval to be postponed until January this year.

Spain and Germany have been the main supporters of the agreement. On the 8th, the Spanish Ministry of Economy praised the trade agreement, calling it a "key strategic alliance" for Europe.

This week, EU Commissioner for Trade, Maros Šefčovič, said that the agreement with MERCOSUR would increase European exports to Latin America by 50%, and eliminate some tariffs affecting these goods with rates as high as 25%. He also emphasized that the agreement includes 344 European geographical indications, which will protect these products from counterfeiting.

According to AFP on January 9, the EU approved the free trade agreement with MERCOSUR on January 9, despite the anger of farmers and the opposition of France.

European Commission President von der Leyen welcomed this "historic agreement" with Latin America and "looked forward eagerly" to signing it. As one of the four founding members, Paraguay's Foreign Minister Rubén Ramírez responded that the agreement was "balanced," while "both sides had unsatisfactory aspects throughout the negotiations, which is reality." The Argentine government said that the signing ceremony is planned to be held in Paraguay on January 17.

The agreement reached between the EU and Argentina, Brazil, Paraguay and Uruguay will create one of the world's largest free trade areas, covering over 700 million consumers.

The approval of the agreement still depends on the vote of the European Parliament. Due to the intensifying agricultural protests, the voting result could be very close.

The largest agricultural union in France, the National Confederation of Agricultural Operators, has announced that it will hold a large demonstration in front of the European Parliament headquarters in Strasbourg on January 20. On the 9th, protests also occurred in Poland and Italy, and the mobilization in France continues, with 150 out of 720 European parliamentarians having called for legal action to try to freeze the agreement.

Critics argue that the agreement will lead to cheap South American agricultural products, not necessarily meeting EU standards and lacking sufficient inspection, flooding into Europe's agriculture. Supporters, on the contrary, believe that this will help revitalize the struggling European economy and "strengthen the EU's strategic autonomy."

The agreement will promote exports of European cars, machinery, wine and cheese by eliminating most tariffs. At the same time, beef, poultry, sugar, rice, honey and soybeans from South America will enter Europe more easily with tariff-free quotas, causing concern among related industries.

The return of Trump to the White House has provided additional arguments for the supporters of the agreement. The European Commission emphasized that the EU must diversify its trade partners. Brazilian President Lula also expressed joy at this "historic day for multilateralism."

Translation by Pan Geping, Su Jiawei

Original: toutiao.com/article/7594021140499907106/

Statement: This article represents the views of the author.