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The EU and the Mercosur bloc of South American nations inked an agreement in principle on Friday on a pact 25 years in the making, Reuters reported on Friday. The agreement saw amendments from a 2019 version, including in public procurement, auto trading, and critical mineral exports, as well as an annex about environmental measures to address South American fears about EU protectionism.
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Not without challenges: The trade agreement still must go through legal formalities, translation, and approval by member countries, with a possibility looming that it may still be blocked by staunch opponents like France. “Only two of the five spoke and no questions were taken. That in itself, speaks volumes,” said an EU source closely involved in the talks, explaining that the agreement came out “by the skin of its teeth … At least we have the association agreement, the rest will keep playing out in the coming days.”
Background: The EU and Mercosur had been looking to complete the long delayed trade treaty by early December. France has been leading the opposition within the EU — alongside Austria, and the Netherlands — and has called the European Commission to renegotiate the agreement by incorporating “mirror clauses” which could impose identical standards on products traded between the two blocs.
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