Spain, Germany Hail Mercosur Deal But France And EU Farmers Fume

Brussels, (APP - UrduPoint / Pakistan Point News - 7th Dec, 2024) Germany and Spain hailed the conclusion Friday of a controversial free-trade deal between the European Union and South America's Mercosur bloc while France said the deal was still unacceptable and farmers' unions expressed dismay.

The agreement was announced by the head of the EU's executive arm, European Commission chief Ursula von der Leyen, at a summit in Montevideo.

Although negotiations have concluded, the EU-Mercosur deal still needs to be approved by at least 15 of the European Union's 27 member nations representing a minimum of 65 percent of the EU population.

It would create a sprawling free-trade zone of more than 700 million people between the EU states and Argentina, Brazil, Paraguay and Uruguay.

"Today, the European Union has achieved a historic agreement with Mercosur to establish an unprecedented economic bridge between Europe and Latin America," Spain's Prime Minister Pedro Sanchez wrote on X.

"Spain will work to ensure that this agreement is approved at the (European) Council, because trade openness with our Latin American friends will make us all more prosperous and resilient," the Socialist premier added, referring to the body representing EU states.

Germany's Chancellor Olaf Scholz said that "an important hurdle for the agreement has been overcome."

"After more than 20 years of negotiations, the Mercosur countries and the EU have reached a political agreement," he added on X.

Portugal's Prime Minister Luis Montenegro also welcomed the conclusion of the negotiations, saying on X the deal will "create opportunities for our citizens and our companies."

But an official in President Emmanuel Macron's office said the deal remains "unacceptable" to France in its current form.

"This is not the end of the matter, the agreement with Mercosur has not entered into force," the official told reporters.

"The deal has neither been signed, nor ratified."

France has led opposition to the deal along with Italy and Poland.