One EU leader can scrap an agreement worth billions

Europe’s credibility is being tested not only because of Ukraine money but also because of the Mercosur trade agreement.

The trade agreement, which has been negotiated for 25 years, was supposed to be approved by the majority of the EU countries at the summit that started on Thursday, but now it threatens to be postponed due to the opposition of the EU’s large agricultural countries.

The trade negotiations between the EU and the Mercosur group (Brazil, Argentina, Paraguay and Uruguay) were completed a year ago, but the outcome of the negotiations has not yet received authorization from the EU countries to approve the agreement.

Chairman of the Commission Ursula von der Leyen plans to travel to Brazil on Saturday, where he is supposed to sign the Mercosur trade agreement.

In order to sign the agreement, however, he needs a mandate from the majority of the member states.

On Thursday, it is still uncertain whether the trade agreement has the support of the majority of EU countries. France and Poland in particular have opposed the agreement, and Italy’s position also seems negative.

Macron’s demands

The French president who arrived at the EU summit Emmanuel Macron renewed its previous demand in Brussels to postpone the Mercosur trade agreement. He justified his demand with the fact that the contract is not ready yet.

“It’s about European coherence and a Europe that protects its agriculture and its producers,” the French president said.

According to Macron, France cannot accept that agriculture, food and the food security of citizens are sacrificed for the sake of an agreement that has not yet been finalized.

On Wednesday, the EU Parliament and the Council of Member States agreed on stronger security measures for agriculture, hoping that it would reassure France and Italy. However, this does not seem to have happened.

Macron said on Thursday in Brussels that he had “many conversations” with the Italian prime minister in recent days Giorgia Melonin with now having the power to either approve the deal or vote to postpone it, as Italy is key in forming the minority that allows the postponement.

“Even he (Meloni) considers that things are not ready to be voted on today,” Macron said.

Meloni spoke in the Italian Senate on Wednesday and hinted at the time that the deal is not yet complete.

Billions in customs duty savings

The EU Commission, Germany, Spain and smaller exporting countries, such as Finland, who support the agreement, are trying to reach an agreement because, according to them, a delay could destroy the agreement completely.

President of Brazil Lula da Silva has threatened to withdraw from the Mercosur agreement entirely if it is not approved before the end of the year.

According to supporters of the agreement, it would benefit Europe economically and politically as the EU seeks to diversify its global relations in the Trump era.

With the agreement, EU exports to the Mercosur region could increase by 39 percent by 2040. In addition, the removal of customs duties would save EU export companies more than four billion euros annually.

Chancellor of Germany Friedrich Merz emphasized in Brussels that the agreement must be concluded.