European Commission President Ursula von der Leyen is set to arrive in Uruguay to attend the Mercosur summit as the bloc aims to conclude a long-sought trade deal with key Latin American nations.
Technical talks have been ongoing with Argentina, Brazil, Uruguay and Paraguay over what would be the biggest trade agreement ever concluded by the European bloc.
“The finish line of the EU-Mercosur agreement is in sight,” von der Leyen said in a post on X. “Let’s work, let’s cross it.”
Von der Leyen’s decision to attend the summit in Montevideo, which opens Thursday, is a sign that negotiators see a deal on the pact as likely, according to people familiar with the matter who were granted anonymity to discuss sensitive issues.
The trade deal would reduce tariffs for most European Union exports to some of the largest Latin American economies, while opening the European market more to imports including agricultural products. It would also strengthen the European footprint in a region where China has made inroads in recent years.
It will be particularly important for car exporters, who will see the current 35 percent tariffs gradually removed over a number of years. High duties will be also eliminated for other industrial products such as car parts, machinery, chemicals, clothing and textiles.
The agreement, which would create an integrated market of 780 million consumers, still faces a very difficult process of ratification, as key member states including France and Poland have opposed the deal over environmental and regulatory concerns.
The long-delayed Mercosur trade pact was agreed to in principle in 2019 but has mainly been held up by French objections since. If a deal is reached soon, it would come at a difficult time for French President Emmanuel Macron, who is coping with the collapse of his government.
Germany, which represents around a fifth of the EU population, is a strong backer of the deal, along with Spain.
Brazil is among the Latin American nations pushing hard for a deal.
“What we want is to conclude the negotiations this year,” said Mauricio Lyrio, a secretary at Brazil’s foreign ministry who is leading its negotiations with the EU. “What I can say is that we’re hopeful.”
Von der Leyen is also scheduled to meet with Uruguayan President Luis Lacalle Pou on Thursday.
by Jorge Valero, Alberto Nardelli & Simone Iglesias, Bloomberg
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