EU Council Backs Mercosur Trade Pact, Clearing Way for Signature

Overview

• EU countries approved the agreement by qualified majority, with 21 in favor, five against (France, Poland, Austria, Hungary and Ireland) and Belgium abstaining.
• Argentina’s foreign minister said the signing is planned for January 17 in Asunción, and Ursula von der Leyen is authorized to sign for the EU.
• The agreement would create a market of roughly 700–720 million people, phasing out most tariffs—about 91% of EU goods into Mercosur over up to 15 years and about 92% of Mercosur goods into the EU over up to 12 years.
• Sensitive agricultural items such as beef, poultry, rice and honey will face quotas and emergency safeguards designed to protect EU farmers from sudden market disruption.
• Binding sustainability clauses cover deforestation and Paris Agreement commitments, while environmental groups contend the protections are inadequate.