The EU and a South American Trade Bloc Reach a Giant Trade Deal After 25 Years of Talks
The EU and a South American Trade Bloc Reach a Giant Trade Deal After 25 Years of Talks
"Anyone with any memory is skeptical," said AS/COA's Brian Winter to Associated Press.
The European Union reached a blockbuster free trade agreement Friday with Brazil, Argentina and the three other South American nations in the Mercosur trade alliance, capping a quarter-century of on-off negotiations even as France vowed to derail the contentious accord.
Provided it is ratified, the accord would create one of the world’s largest free trade zones, covering a market of 780 million people that represents nearly a quarter of global gross domestic product. The accord’s proponents in Brussels say it would save businesses some $4.26 billion in duties each year, slashing red tape and removing tariffs on products like Italian wine, Argentine steak, Brazilian oranges and German Volkswagens.
Its critics in France, the Netherlands and other countries with big dairy and beef industries say the pact would subject local farmers to unfair competition and cause environmental damage. From Uruguay, the host of the Mercosur summit, European Commission President Ursula von der Leyen hailed the deal as a “truly historic milestone” at a time when global protectionism is on the rise. [...]
But if past EU trade agreements are any indication, ratification could take years. “We celebrate it, but it’s still far from reality,” Milei said of the accord. In 2016, the EU and Canada signed a pact, known as the Comprehensive Economic and Trade Agreement, or CETA, but the approval process is still lumbering along. Germany’s parliament only signed off on that pact two years ago, and the French Senate rejected it in March this year.
“Anyone with any memory is skeptical,” said Brian Winter, a vice president of the New York-based Council of the Americas. “They have trotted out leaders and declared victory and celebrated, and yet there always seems to be a hitch.”
