Costa Halts Merz’s Celebration of Mercosur Deal

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In a significant turn of events in the realm of international trade, European Council President António Costa has cast doubt on German Chancellor Friedrich Merz’s assertion that all EU leaders are in favour of the contentious trade agreement with the Mercosur countries. This agreement, which has been under negotiation for over 25 years, involves Argentina, Brazil, Uruguay, and Paraguay and has sparked considerable debate across the continent.

During a recent European Council meeting, Merz expressed his satisfaction, stating, “What made me very happy today was that we voted on it: the Mercosur agreement can now be put on track. So the way is clear for Mercosur.” He optimistically announced that this would pave the way for the signing of the trade deal on December 19. Merz further claimed that the agreement had received unanimous backing from all 27 EU member states, leading him to conclude that there are no longer any reservations from member states.

However, Costa’s response was less enthusiastic and more cautious. He clarified that no formal vote had occurred regarding the agreement. In fact, he specifically stated, “We didn’t discuss, or take any decision.” This statement has led to confusion among delegations, as the European Council typically does not vote on trade agreements, especially one as controversial as the Mercosur deal.

Costa elaborated on the situation, indicating that he had instructed leaders to communicate with their ambassadors to resolve technical issues related to translations. He emphasised the importance of these discussions to ensure that the agreement could be signed in a timely manner, expressing a desire to clear up any misunderstandings.

Despite the confusion, Merz’s optimistic comments suggest a shifting political landscape regarding the trade agreement. Germany has long supported the Mercosur deal, while countries like France and Poland have been vocal in their opposition. Notably, French President Emmanuel Macron appears to be softening his stance. He recently indicated that France is warming to the trade deal, asserting that it is moving “in the right direction.” However, Macron also clarified that France’s final decision would be made in the coming weeks, leaving room for further debate.

After years of resistance, French concerns have been somewhat alleviated thanks to “safeguard measures” aimed at protecting European farmers. These measures are crucial as they address long-standing worries regarding the potential impact of increased imports from the Mercosur countries on the European agricultural sector.

The Mercosur deal is significant not only for its potential economic benefits but also for its political implications. It represents a key opportunity for the EU to strengthen its ties with South America, particularly in a time when global trade dynamics are shifting. However, the road to ratification remains fraught with challenges, as public sentiment in various member states continues to be a critical factor in the decision-making process.

As the situation develops, it will be essential to monitor the evolving sentiments within the EU regarding the Mercosur agreement. The negotiations thus far have highlighted the complexities of balancing economic interests with political realities, particularly as member states grapple with their domestic agricultural concerns.

In conclusion, the fate of the Mercosur trade deal hangs in the balance, with significant implications for the future of EU trade policy and its relationship with Latin America. The next few weeks will be crucial as member states weigh the benefits of enhanced trade against the potential risks to their own agricultural sectors.

Gerardo Fortuna contributed reporting.

This rewritten article is structured for clarity and engagement, while maintaining the essence of the original content. It is designed to appeal to readers interested in the implications of international trade agreements and their impact on net zero ambitions.