EU states have provisionally approved a historic trade deal with Mercosur, marking a significant milestone after 25 years of negotiations.
EU states have provisionally approved the bloc's largest free trade accord with South America's Mercosur after more than 25 years of negotiations, reports Reuters.
At least 15 countries representing 65 percent of the EU's population voted in favor, which is sufficient for approval. France, Austria, Hungary, Ireland, and Poland opposed the deal, while Belgium abstained.
German Chancellor Friedrich Merz hailed the vote as a milestone, stating that the agreement would benefit Europe. Commission President Ursula von der Leyen is expected to sign the accord with Argentina, Brazil, Paraguay, and Uruguay in Asuncion.
The deal would eliminate EUR4 billion (US$4.66 billion) in duties on EU exports, making it the bloc's largest tariff reduction. Mercosur tariffs include 35 percent on car parts, 28 percent on dairy, and 27 percent on wines.
EU exports are dominated by machinery, chemicals, and transport equipment, while Mercosur exports focus on agriculture, minerals, pulp, and paper. Trade between the two blocs was valued at EUR111 billion in 2024.
Farmers across Europe protested against the deal, blocking highways in France and Belgium and marching in Poland. Critics argue that cheap imports of beef, poultry, and sugar will undercut domestic producers.
The European Commission introduced safeguards, including crisis funds, stricter import controls, and the ability to suspend sensitive farm imports. Italy shifted from opposing the deal in December to supporting it.
France's agriculture minister, Annie Genevard, vowed to fight for rejection in the European Parliament, where the vote could be tight. Environmental groups also oppose the accord, warning that it could drive deforestation in the Amazon.
Parliament's trade committee chairman, Bernd Lange, expressed confidence that the deal would pass, with a final vote expected in April or May.
