Last Friday, a sufficient majority of EU countries approved the Mercosur agreement, which has been under negotiation since 1999. A date has now been set for a formal signing.
However, that does not mean everything is settled. First, a majority in the European Parliament must also approve it, which could take until February or March.
Facts: Mercosur Agreement
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The EU and the Mercosur countries – Brazil, Uruguay, Argentina and Paraguay – have been negotiating a free trade agreement since 1999.
The European Commission expects that lower tariffs and quotas will increase annual EU exports to the four countries by almost 40 percent overall and by around 50 percent for agricultural products.
Agriculture is also a major contentious issue surrounding the agreement. Major meat-producing EU countries such as France and Ireland are skeptical and deeply concerned about increased imports of cheap meat from Mercosur.
Bolivia has also been part of Mercosur since last year, but needs to undertake additional negotiations with the EU if it wants to be covered by the agreement.
