LONDON, December 15. /TASS/. The European Union will lose global credibility if it fails to reach a trade deal with the countries of the South American Common Market (Mercosur), Maros Sefcovic, European Commissioner for Trade Policy and Economic Security, warned.
"I think that this is a matter of the credibility and predictability of the EU. We talk often in Europe of the need to be strategic. There is a strategic decision to be taken," Sefcovic told the Financial Times.
The EU Commissioner assured that the deal with the largest countries of Latin America has all the advantages, to "open markets for EU cars and machinery and promise access to critical raw minerals to reduce dependence on China."
Negotiations on the EU-Mercosur agreement, which would create one of the largest free trade areas, began 25 years ago. European Commission President Ursula von der Leyen plans to travel to Brazil on December 20 to push for the agreement. A qualified majority of at least 15 of the 27 EU member states must vote "for" to conclude the deal. Several countries, including Belgium, Austria, and Ireland, opposed the deal or have not yet made a decision. The EU agricultural lobby also opposes to the agreement. A vote on the agreement is scheduled for Friday.
However, French President Emmanuel Macron and Italian Prime Minister Giorgia Meloni agreed to postpone the vote on the agreement, Reuters reports, citing sources.
The main critics of the deal are European farmers, particularly beef, poultry, and dairy producers, who fear they will be unable to compete with cheaper overseas products.
"We spent a lot of time with our agriculture community to hear them out but also to address their concerns. And now I honestly believe that we did," Sefcovic said.
He noted that the agreements with Mercosur include a mechanism for reverting to tariffs on South American products if they lead to a reduction in EU production.
As the Financial Times points out, citing unnamed diplomats, the failure to reach a deal would be further evidence of the extreme decline in EU governance.
"If we can’t agree on Mercosur we don’t need to talk about European sovereignty anymore. If we cannot reach a trade deal with them, after a quarter of a century of trying, we might as well just give up," another senior EU diplomat told FT.
Mercosur is South America's largest trade and economic association, founded by Argentina, Brazil, Paraguay, and Uruguay. Their combined territory accounts for over 70% of South America's land area, with a population of 295 million.