MercoPress. South Atlantic News Agency

Mercosur-EU deal at stake at Montevideo Summit starting Thursday

Von der Leyen's presence is interpreted as a will on the part of most EU members to conclude the FTA

The Southern Common Market (Mercosur) hopes to clinch the Free Trade Agreement (FTA) with the European Union (EU) during the two-day regional bloc's Summit starting Thursday in Montevideo with European Commission President Ursula von der Leyen as the main guest.

If signed, the FTA would create the largest free trade zones worldwide after 25 years of negotiations between Argentina, Brazil, Paraguay, and Uruguay on one side and 27 EU countries on the other.

“The expectation is that the technical agreement will be closed on Friday,” Agence France Presse quoted sources familiar with the negotiations as saying.

The FTA is resisted by France out of fear of unfair competition with its farmers. After negotiations stalled following the agreement in principle reached in 2019, they were resumed in recent months at the urging of the European Commission, which determines trade policy for the entire EU.

Von der Leyen is expected to meet with Presidents Luis Lacalle Pou of Uruguay, Javier Milei of Argentina, and Luiz Inácio Lula da Silva of Brazil to fine-tune the details of the understanding. After that, a confirmation of the agreement between the two groups is expected.

Although there is still no confirmation regarding the outcome, von der Leyen's presence is interpreted as both significative and a will on the part of most EU members to conclude the negotiations in a positive manner. However, Paraguayan Foreign Minister Ruben Ramirez Lezcano said on Dec. 2 in a statement that he must “defend” his country's interests, a statement that has cast doubts regarding the Montevideo Summit.