Germany’s support for the EU-Mercosur trade agreement is crucial for Europe’s economic growth, with German President Frank-Walter Steinmeier emphasizing the need for a quick ratification of the deal.
German President Frank-Walter Steinmeier has emphasized the importance of the European Union (EU)-Mercosur trade deal, stating that Germany and Uruguay need a quick ratification of this agreement. The free trade agreement between the EU and the Latin American trade bloc Mercosur aims to reduce tariffs and boost trade.
The EU-Mercosur trade deal is a comprehensive agreement between the European Union and the Mercosur bloc, comprising Argentina, Brazil, Paraguay, and Uruguay.
Negotiated over 20 years, the deal aims to reduce tariffs on goods traded between the two regions.
Key benefits include increased access to each other's markets, improved agricultural exports, and enhanced economic cooperation.
The agreement also covers services, intellectual property, and sustainable development.
In '2019' , EU leaders approved the deal, but its ratification has been delayed due to concerns over environmental and social impacts.
Key Players Support Trade Deal
Steinmeier made these comments during a press conference with Yamandu Orsi, President of Uruguay, in Montevideo. Both leaders expressed their hope for the rapid implementation of the agreement. Steinmeier acknowledged that some campaigning was still necessary to persuade European member states to support the deal.
Benefits of EU-Mercosur Trade Deal
The trade deal has been under negotiation for over 20 years and is expected to create one of the world’s largest free trade zones, with a population of more than 700 million. The main goal of this agreement is to reduce tariffs and increase trade between the EU and Mercosur countries (Brazil, Argentina, Uruguay, and Paraguay).
Challenges Ahead
Despite the support from key players, there are still challenges ahead. Some European member states, such as France, Italy, and Poland, have expressed resistance to the deal. Additionally, German farmers fear new competition that can produce more cheaply than they can.
Uruguay’s President Orsi thanked Germany for its involvement in the negotiations, stating that ‘The German support was particularly important for us.’ Steinmeier also expressed hope that Argentina would not withdraw from the agreement, as this could have implications for the entire concept.
