After 25 years of negotiations, the EU finalized an agreement with Mercosur to regain influence in Latin America, but faced fierce opposition from France, sparking a wave of skepticism across Europe.

According to the European news site euronews.com on January 20th, after a record-breaking 25 years of negotiations, the European Union (EU) officially signed a free trade agreement with the Mercosur bloc (comprising Argentina, Brazil, Paraguay, and Uruguay). However, behind this "achievement of a generation," as European Commission President Ursula von der Leyen put it, lies a fierce internal struggle threatening to fracture the bloc and fuel Euroscepticism.

Geostrategic game

For the EU, the Mercosur agreement is not simply an economic issue but also a strategic geopolitical move. The primary goal is to regain influence in Latin America, where China is rapidly increasing its influence.

Figures from the European Commission reveal an alarming situation: In 2000, the EU's share of imports to Mercosur was six times larger than China's. Now, China's market share has reversed, exceeding the EU's by approximately 40%.

Against the backdrop of the US under President Donald Trump threatening to impose "unreasonable" tariffs and Beijing ready to use raw materials as a "weapon," the EU needs to diversify its partners to avoid isolation. The agreement is expected to open up markets for services, dairy, wine, and especially public procurement to EU businesses.

Protests from France

Despite receiving support from the majority of member states in the vote on January 9th, the agreement faced strong resistance from France. Paris considered it an imposition from Brussels, raising concerns about "unfair competition" for its domestic agricultural sector.

The debate revolves around two opposing viewpoints: Opponents argue that Latin American agricultural products do not meet the EU's stringent production standards, putting European farmers at a disadvantage. French President Emmanuel Macron further pointed out that the agreement would only contribute a modest 0.05% increase to the EU's GDP by 2040.

Supporters argue that French agriculture is using Mercosur as a "scapegoat" for its declining internal competitiveness. Former EU Director-General for Trade Jean-Luc Demarty emphasized: "The fault lies entirely with France after 15 years of implementing weak economic policies."

To appease the situation, the European Commission pledged €45 billion in support for EU farmers from 2028 and established strict tariff quotas for sensitive items such as beef and poultry. However, these concessions were still not enough to convince Paris.

The dangers of Euroscepticism

This division is creating opportunities for far-right political forces, particularly the National Rally (RN) party in France. RN leader Jordan Bardella quickly capitalized on the opposition to initiate no-confidence votes in both the European Parliament and the French National Assembly.

In a country where trade agreements like CETA (between the EU and Canada) have yet to be fully ratified after nearly 10 years, Mercosur is becoming a "trigger" for a wave of EU backlash.

This week, the Mercosur agreement was presented to the European Parliament for final ratification. However, with a resolution challenging the agreement before the EU's supreme court being prepared, reaching the finish line after 25 years of negotiations is not yet the end of the geopolitical turmoil on the "old continent".

Source: Tin Tuc News

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