EU to present Mercosur trade deal for member state approval

The European Commission is to present EU countries with the final text of a huge trade deal with South American bloc Mercosur for approval on Wednesday, according to EU sources.

Twenty-five years in the making, the agreement with the club bringing together Argentina, Brazil, Paraguay and Uruguay will create a 700-million-customer free-trade area.

Struck by Brussels in December, it still needs to be approved by at least 15 of the EU's 27 member nations – and the European Parliament – to be formally adopted.

The deal is backed by a wide majority of EU countries keen to diversify trade away from the United States. 

But it has been staunchly opposed by France over fears that a flow of cheaper agricultural goods would undercut European farmers. 

To allay such concerns, the commission has pledged to strengthen safeguard clauses for "sensitive agricultural products," two sources told AFP Monday. 

Brussels had already said it planned to set up a one-billion-euro (US$1.2 billion) "reserve" for European farmers who might be negatively impacted by the deal.

The deal, once ratified, would allow the EU to export cars, machinery and pharmaceutical products more easily to South America.

In return, agricultural giant Brazil and its neighbours would be able to sell meat, sugar, rice, honey, soybeans and other products to Europe with fewer restrictions.

– TIMES/AFP