(Reuters) – European Commission President Ursula von der Leyen touched down in Latin America on Thursday to finalise a long-delayed trade deal between the European Union and the South American Mercosur bloc.
“The finish line of the EU-Mercosur agreement is in sight. Let’s work, let’s cross it. The largest trade and investment partnership the world has ever seen. Both regions will benefit,” von der Leyen said in a post on X.
Mercosur will meet in Montevideo on Thursday amid signs the bloc of Argentina, Brazil, Paraguay and Uruguay will use the event to announce an agreement on the trade deal, which would be the largest struck by the European Union in terms of tariffs reductions.
Von der Leyen, travelling just days into her second term in office, faces opposition to the EU-Mercosur deal at home.
European farmers have repeatedly protested against the deal, complaining it will lead to cheap imports of South American commodities, notably beef, that is not subject to the same green and food safety standards as in the European Union.
France has been the most vociferous critic of the proposed agreement, but is distracted by a political crisis after the collapse of French Prime Minister Michel Barnier’s short-lived government.
However, other EU members such as Germany insist the EU-Mercosur deal is vital for the bloc as it looks to diversify its trade after the near-closure of the Russian market and discomfort about its reliance on China.
They also see Mercosur as a potentially reliable source of critical minerals, such as lithium, required for its green transition.
EU countries as a whole and the European Parliament would have to approve any trade deal agreed.
This post is originally published on INVESTING.
