After more than 25 years of negotiations, the European Union officially approved on the 9th the signing of a free trade agreement with South America’s 'Mercosur', creating one of the world’s largest free trade zones. This move has received high praise from several South American governments, but has also provoked strong backlash from farmers within Europe, with French President Emmanuel Macron openly expressing his opposition.
According to CNN Brazil, citing a statement from the Brazilian government, this agreement covers a population of approximately 720 million people, with a total economic scale exceeding 22 trillion US dollars (89.51 trillion ringgit). Brazil’s Vice President and Minister of Industry and Commerce, Geraldo Alckmin, stated that this is the largest agreement in Mercosur’s history and will expand the opportunities for Brazilian companies to access the EU market, as well as promote investment and sustainable development. He emphasized that the agreement is a win-win, capable of bringing in cheaper products with better quality.
According to Brazilian news site G1, the current EU presidency of Cyprus announced that a majority of member states supported the agreement, with only France, Ireland, Poland, Austria, and Hungary voting against it, while Belgium abstained. EU diplomats indicated that at least 21 countries supported it, meeting the required 'qualified majority'.
However, the agreement has sparked fierce protest among the European agricultural sector. French farmers drove tractors into central Paris, gathering in front of the Eiffel Tower and the Arc de Triomphe to protest against the potential impact of low-priced South American agricultural products on the local market. Macron clearly stated on social media that France would vote against the agreement, claiming that the parliament exhibited 'unanimous political opposition'.
According to reports, despite the controversy, European Commission President Ursula von der Leyen is expected to sign the agreement jointly with South American leaders next week. Argentina’s Ministry of Foreign Affairs additionally revealed that the signing ceremony is tentatively scheduled for January 17.
Supporters believe the agreement will help the EU reduce its reliance on China and mitigate the impact of US tariffs, while opponents worry about agricultural competition and differences in environmental standards. Italy recently changed its stance to support the agreement, becoming a key driver in pushing it through.
The report points out that if formally enacted, the agreement would see the EU gradually eliminate tariffs on about 92% of exports from South America, while Mercosur would exempt about 91% of EU exports from tariffs. The EU estimates that the agreement could reduce taxes by more than 4 billion euros (18.964 billion ringgit) per year.