The European Union and Mercosur countries—Argentina, Brazil, Paraguay, and Uruguay—have concluded a historic trade agreement after more than two decades of negotiations. European Commission President Ursula von der Leyen announced the milestone on December 6, 2024, at a summit in Montevideo, Uruguay.
“This is a truly historic milestone,” von der Leyen stated, describing the agreement as “ambitious and balanced.” The deal aims to create a free trade area covering 780 million people across the two regions.
However, the agreement must still be ratified by all 27 EU member states, facing opposition from countries like France and Poland. French President Emmanuel Macron, vocal in his opposition, has sought to block the deal, citing concerns over agricultural imports competing with local farmers.
Italy has also expressed reservations, demanding assurances for its farmers, while Ireland, the Netherlands, and Austria remain undecided.
Supporters of the agreement argue it will open new markets for European businesses while bolstering the EU’s influence in Latin America amid rising Chinese investments in the region.
The Commission emphasized that Friday’s announcement marks only the first stage of a lengthy ratification process. A spokesperson noted, “The final political agreement is just the beginning of a long journey ahead.”
The timing of the deal adds pressure to Macron, who is already navigating a political crisis following the collapse of Prime Minister Michel Barnier’s administration earlier this week.
