Germany's Scholz urges swift conclusion to EU-Mercosur trade deal

German Chancellor Olaf Scholz called Wednesday for a rapid conclusion to longstanding negotiations on an EU trade deal with South America's Mercosur bloc that faces fierce French opposition.

The negotiations "should now be finalised quickly" Scholz said in a speech in Berlin to Germany's BGA wholesale and foreign trade association.

Technical discussions on the free trade pact "are well advanced," he said, adding that "the vast majority of EU member states also support the agreement politically."

"We need pragmatism and flexibility on all sides for the final metres of the negotiations, because the Mercosur agreement is groundbreaking for diversifying and strengthening the resilience of our economy," said Scholz, who met with French President Emmanuel Macron in Berlin on Wednesday.

The 27-member European Union and Mercosur countries Argentina, Brazil, Uruguay and Paraguay have been in talks for over two decades on creating a massive free trade zone that would cover more than 700 million people.

The accord aims to cut import tariffs on – mostly European – industrial and pharmaceutical goods, and on agricultural products.

The contours of a deal were agreed in 2019, but no final version has been ratified.

Germany, Italy and Spain are among European countries backing a deal but others such as France have voiced opposition, citing concerns about cheap agricultural imports and the enforcement of environmental standards.

During a visit to Brazil in March, Macron said the current deal was "really bad." 

Macron has notably called for clauses to protect European farmers, that would ensure imported agricultural products meet the same standards as those produced within the EU.

– TIMES/AFP