The president of the European Commission, Ursula von der Leyen, will arrive in Uruguay to attend the Mercosur summit, as the bloc seeks to conclude a long-sought trade deal with key Latin American nations.
Technical talks are underway with Argentina, Brazil, Uruguay and Paraguay on what would be the largest trade agreement ever concluded by the European bloc.
“The goal of the EU-Mercosur agreement is in sight”said von der Leyen in a publication on X. “Let’s work, let’s cross it.”
von der Leyen’s decision to attend the summit in Montevideo, which begins on Thursday, It is a sign that negotiators consider an agreement on the pact likely.according to people familiar with the matter who were granted anonymity to discuss sensitive issues.
The trade deal would reduce tariffs on most European Union exports to some of Latin America’s largest economies, while further opening the European market to imports, including agricultural products. It would also strengthen the European presence in a region where China has made inroads in recent years.
It will be especially important for auto exporters, who will see current 35% tariffs phased out over several years. High tariffs will also be eliminated on other industrial products, such as auto parts, machinery, chemicals, clothing and textiles.
The agreement, which would create an integrated market of 780 million consumers, still faces a very difficult ratification process, as key member states, including France and Poland, have opposed the deal over environmental and regulatory concerns.
The long-delayed Mercosur trade pact was agreed in principle in 2019, but has since been held up mainly by French objections. If a deal is reached soon, it would come at a difficult time for French President Emmanuel Macron, who is grappling with the collapse of his government.
Germany, which represents around a fifth of the EU populationis a firm supporter of the agreement, along with Spain. Brazil is among the Latin American nations pushing hard for a deal.
“What we want is to conclude the negotiations this year,” said Mauricio Lyrio, secretary of Brazil’s Foreign Ministry who is leading negotiations with the EU. “What I can say is that we are hopeful.” Von der Leyen is also scheduled to meet with Uruguayan President Luis Lacalle Pou on Thursday.
