Scholz Says EU Needs 'geostrategic' Mercosur Deal For Growth

Berlin, (APP - UrduPoint / Pakistan Point News - 6th Feb, 2024) German Chancellor Olaf Scholz underlined the importance of closing a long-stalled EU trade deal with South America's Mercosur bloc, saying it carried strategic significance and would boost Europe's growth prospects.

"We need such agreements because they are of great geostrategic importance. It cannot be that we complain in newspapers that the influence of certain countries is increasing and that of Europe is decreasing, while on the other hand don't find a way to improve the economic growth prospects of our continent," said Scholz.

But France's Prime Minister Gabriel Attal, speaking at the same press conference ahead of dinner with Scholz, insisted that "the conditions are not met" for an agreement the Mercosur.

Under negotiations for nearly a quarter of a century, the South America deal has recently run into fierce resistance from farmers across Europe, who have been blocking roads, protesting for better revenues and conditions.

While the farmers have a list of demands, many single out the South America deal over fears that it could further depress their produce prices.

The accord aims to cut import tariffs on -- mostly European -- industrial and pharmaceutical goods, and on agricultural products.