The European Union (EU) approved the free-trade agreement with Mercosur on Friday, bringing to a close negotiations that have lasted 25 years.
According to international news agencies, the vote clears the way for the President of the European Commission (EC), Ursula von der Leyen, to travel immediately to Asunción, Paraguay, to sign the pact.
Mercosur has not issued an official statement yet on the decision. However, for the agreement to fully enter into force it must still be approved by the European Parliament and by the bloc’s 27 member states.
The deal aims to eliminate tariffs and boost exports within an integrated market covering 780 million consumers.
Diplomatic sources cited said the backing was secured following a meeting of ambassadors in Brussels.
Germany and Spain reportedly voted in favour of the agreement to expand their export opportunities, while France, Ireland and Poland voiced their opposition and voted against it.
The French government argued that the treaty reflects a different era and that current conditions do not justify the risks it poses to its agricultural sectors.
Italy’s change of position proved decisive in securing the necessary majority.
The Italian government backed the proposal after additional funds for the agricultural sector were included in the EU budget and safeguard mechanisms were introduced.
These measures include the launch of investigations if the volume of imports from South America rises by five percent or if prices fall below the average of the past three years.
EU Ambassador to Argentina Erik Høeg hailed the news.
“We celebrate the decision by the EU Council. We're very close to finalising a historic agreement which will open new opportunities for the EU, Argentina and Mercosur and will strengthen a mutually beneficial association with shared values," said Høeg in statements to the press.
"Once it is finalised, it will be the biggest free-trade agreement in the world, creating a market of over 700 million people, representing around 35 percent of international trade, and eliminating or reducing tariffs in over 90 percent of bilateral trade.
"In an international context marked by growing geopolitical tensions, the EU and Mercosur are choosing an intelligent integration based on rules, mutual trust and complementarity," he added.
– TIMES/NA
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