A pivotal moment looms as the Mercosur-EU deal hangs in the balance at the upcoming Montevideo Summit, set to commence on Thursday. The presence of European Commission President Ursula von der Leyen underscores the collective desire of most EU members to finalize the Free Trade Agreement (FTA) with the Southern Common Market (Mercosur) during the two-day gathering.
- Striving for Success:
- The prolonged negotiations spanning 25 years between Argentina, Brazil, Paraguay, Uruguay, and the 27 EU countries may culminate in the creation of the largest free trade zones globally if the FTA is inked at the summit.
- Sources familiar with the negotiations anticipate the closure of the technical agreement on Friday, setting the stage for a potential breakthrough.
- Challenges and Reservations:
- France’s apprehension regarding unfair competition for its farmers has posed a significant obstacle to the FTA’s advancement. Despite an initial agreement in 2019, negotiations hit an impasse until the recent resumption guided by the European Commission.
- Von der Leyen’s scheduled meetings with the leaders of Uruguay, Argentina, and Brazil signify a concerted effort to iron out the finer points of the agreement before a formal confirmation is expected.
- Uncertainties and Determination:
- While the outcome remains uncertain, the symbolic significance of von der Leyen’s presence signals a collective will among EU members to reach a positive resolution. Nonetheless, Paraguayan Foreign Minister Ruben Ramirez Lezcano’s assertion to protect his country’s interests casts a shadow of doubt over the Montevideo Summit.
In conclusion, as stakeholders converge in Montevideo, the fate of the Mercosur-EU deal hangs in the balance. The coming days will test the resilience of negotiations and the commitment of all parties involved to navigate the final hurdles towards a mutually beneficial agreement. Stay tuned as history unfolds at this critical juncture in international trade relations.
