EU – MERCOSUR, Geostrategic Success for Borrell
Vice President of Brazil: “This is the result of dialog in a difficult moment of fragmentation at the global level”
European Commission President Ursula von der Leyen announced on December 6 the finalization of a free trade agreement involving the European Union (EU) and MERCOSUR, which brings together Uruguay, Paraguay, Argentina, Brazil, and Bolivia.
The legal process of the agreement is still unclear: however, not all European countries agree with the decision; France, Poland, Austria, and partly Italy are wary of agri-food products entering the market at minimum prices.
But there are also countries that have fully supported von der Leyen, such as Germany and Spain, who hope for benefits for exports and see agreements with new regional groups as positive overall, particularly if China and primarily the USA with the next Trump administration raise tariffs in the near future.
Sanchez explained that the world does not need a trade war and that Madrid has always been in favor of negotiations and agreements within the World Trade Organization. Thus, for the Spanish leader, the agreement, reached after more than 20 years of negotiations, is a success for all in a commercial sense.
The agreement is also defended by EU High Representative Josep Borrell, who said via X social network that “the political agreement reached between the EU and Mercosur, in which the Commission of which I was a member invested a lot of time and effort, opens the door to the largest free trade area in the world, with more than 700 million people. It is a geostrategic success.”
The reaction of the Brazilian government was also extremely positive, expressed by Vice President and Minister of Industry, Development and Trade Geraldo Alckmin, who in an interview with the Italian newspaper Corriere della Sera explained: “We are creating an economic bloc of over 700 million people with a total GDP of 22 billion. It will be one of the largest markets in the world, offering huge opportunities for trade and employment (…) European Commission President Ursula von der Leyen has rightly called it a ‘win-win agreement’ that will benefit everyone. It will increase exports and create jobs. It will have a strong social, economic, and political impact. It is the result of dialog in a difficult moment of fragmentation at the global level.”
