On December 6, 2024, in Montevideo, President of the European Commission Ursula von der Leyen is set to sign a significant free trade agreement between the European Union (EU) and the MERCOSUR countries, creating a market of 700 million consumers.
Reports indicate that the technical negotiations for the trade deal are nearing completion. The agreement aims to eliminate most customs duties between the EU and MERCOSUR, facilitating easier exports of European goods such as automobiles, machinery, and pharmaceuticals to South America.
In addition to the trade deal, von der Leyen will announce the establishment of an Environmental Cooperation Fund to support MERCOSUR nations.
Despite the anticipated benefits, significant opposition exists within the EU, particularly from France and Poland. French President Emmanuel Macron has expressed strong concerns regarding the potential environmental impact and implications for European farmers, labeling the current draft of the agreement as 'unacceptable.'