EU-Mercosur agreement finally concluded

The negotiations for the trade agreement between Europe and the South American Mercosur states have lasted 25 years. At times the talks were considered to have failed, then new hope sprouted up again.

At the Mercosur summit in Montevideo on December 6, the President of the European Commission Ursula von der Leyen, together with the Presidents of Brazil, Argentina, Uruguay and Paraguay, finally announced the agreement on a treaty text. This is a milestone for both regions and sends out a signal for free trade, open markets and international cooperation.

For German and European companies, the agreement is a game changer in relations with Latin America and for the global market, because it is not just about trade. It creates:

• • More resilience for both economic regions.
  • More opportunities for diversified and secure supply chains.
  • More prosperity and jobs for people.
  • More quality and safety for the products.
  • More environmental and social protection.

But there is still an important stage to come: after the political conclusion is before the ratification process. In the EU, legal scrubbing and translations are being prepared as the next steps so that the agreement can be signed by the EU Council and approved by the EU Parliament. This will be followed by a complex ratification process in the member states, which will not be without controversy.

However, with the political agreement in Montevideo, the EU and Mercosur have already proven that even widely divergent interests can be brought to a common denominator with a willingness to compromise and determination. This new spirit of partnership must now also be used to ensure that the agreement can enter into force as soon as possible.