After more than 20 years of negotiations, the #Mercosur countries and the EU have reached a political agreement. An important obstacle to the agreement has been overcome. This will create a free market for more than 700 million people along with more growth and competitiveness.
— Bundeskanzler Olaf Scholz (@Bundeskanzler) December 6, 2024
Germany’s trade and industry associations also welcomed the move.
“Such important agreements must not take 25 years,” BGA trade lobby President Dirk Jandura said in a statement, adding that it was now up to the German government to ensure there is a majority for the “milestone” agreement.
The head of Germany’s BDI industry lobby group, Siegfried Russwurm, said the announcement was very good news for German and European companies as well as for their economies.
“In times of increasing fragmentation of global trade, the trade agreement sends a clear and strategic signal for free and rules-based trade,” Russwurm said in a statement.
Spain also maintains that the deal is vital for the bloc as it looks to diversify its trade after the near-closure of the Russian market during the war in Ukraine and discomfort about a reliance on China.
Spain and Germany view Mercosur as a market for EU cars, machinery and chemicals and a potentially reliable source of critical minerals, such as lithium, which is used in batteries and is required for Europe’s green transition.
They also pointed to agricultural benefits, given the deal offers greater access and lower tariffs for EU cheeses, ham and wine.
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Publish date : 2024-12-06 03:35:00
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