MercoPress. South Atlantic News Agency

Mercosur-EU FTA ratification imminent

The imminent announcement is expected to happen during a press conference on Friday morning

Momentum is building up in Montevideo as the presence of European Commission President Ursula von der Leyen seems to herald the imminent signing of the Free Trade Agreement (FTA) with the Southern Common Market (Mercosur) as Brussels needs to halt China's commercial expansion in the region while Donald Trump's return to the White House looms over.

Despite France's opposition and amid some fears that Paraguay might object to it, both citing the defense of local agricultural producers, most analysts concur that Von der Leyen's presence can only be interpreted as a will to go through with the initiative.

A joint press conference by Presidents Luis Lacalle Pou (Uruguay), Santiago Peña (Paraguay), Luiz Inácio Lula da Silva (Brazil), and Javier Milei (Argentina) -Mercosur's founding members- is scheduled for Friday morning alongside the EC Chief.

Glad to set foot in Montevideo, 30 years after my predecessor Jacques Delors.

Throughout this time, Uruguay has always been a trusted, like-minded friend.

Today it is also a key hub for trade and investment in Mercosur.

Thank you @LuisLacallePou for bringing us together. pic.twitter.com/KGlj1Hc8hr

— Ursula von der Leyen (@vonderleyen) December 5, 2024

It is expected that the ratification of the FTA deal will be announced after 25 years of negotiations including an understanding in principle signed in 2019 which needed ratification from each EU country's parliament. Unanimity is not a must - a strong majority would be enough. Hence, France's thumbs down would be insufficient to halt the treaty, marred with concerns regarding environmental protections and government purchases.

Since 2019, several modifications have been introduced to the final document's wording, it was also reported. Spain, Germany, and most European countries are pushing to close these seemingly endless negotiations before Trump ups customs tariffs across the board.

Europe hopes to export more cars, machinery, and medicines to the southern bloc strongly influenced by China, while Mercosur hopes to place more foodstuffs such as soybeans, meat, or honey in Europe.

“The goal of the EU-Mercosur agreement is in sight,” a member of Von der Leyen's entourage was quoted as saying as she arrived in Montevideo on Thursday. “There are no rational arguments not to close an essential agreement also for the European strategic autonomy and economy. It is almost now or never,” an EU source added. “If not, others will occupy that space.”

On Thursday afternoon, Uruguay's Foreign Minister Omar Paganini called the negotiation stage concluded. The countries involved, the minister said, “pronounced themselves in favor of the agreement. Tomorrow [Friday] it will be confirmed with the presence of the leaders.”

Meanwhile, French President Emmanuel Macron insisted Thursday that the draft trade agreement was “unacceptable in its current state.”

“We will continue to relentlessly defend our agricultural sovereignty,” the French presidency added on X.