European Commission puts prepped Mercosur deal on ice
The text has been reviewed by the legal service of the Commission and translated in the 24 official languages, which is enough to move on in the ratification process, the sources said.
The deal was supposed to be sent for ratification last Monday, one of the sources said, adding that Commission President Ursula von der Leyen decided to delay it.
'Maybe she didn't want to complicate the US talks, or she wanted to wait for discussions with Macron,' the same source added, saying that it should now be transferred to the member states in the coming weeks.
The agreement would create a free trade area between the Mercosur countries and the EU, but is facing strong resistance from several member states led by France and including Poland, Austria and the Netherlands. Italy is also reported to be wavering. The main concerns come from the agricultural sector, which sees the deal as opening the door to unfair competition from Latin American products.
'What we've been pushing for is not to change the agreement as it stands, but to enhance it with an additional solution,' French President Emmanuel Macron said after an EU summit on 27 June, adding: 'Several member states support this idea. The aim is to say that we need mechanisms that allow us to protect certain key agricultural markets if they were to be completely destabilized by this trade agreement — what we commonly refer to as safeguard clauses.'
Safeguard measures would allow for a reduction in imports from Latin America in case of disruptions to European markets.
"There are additional discussions among us [Europeans] and there will be some with them [the Mercosur countries] as well,' the French president added.
The Commission has repeatedly denied the possibility of reopening the text.
France's ability to build a blocking minority at the EU council remains uncertain, however. Four member states would be required, representing 35% of EU population.
A lawmaker said that the recent trade agreement found by the EU with Ukraine could make Poland change its position as it has a direct border with the country.
The deal sets quotas and safeguards to limit imports of agri-products towards the EU, after trade with Ukraine had been fully liberalised following the beginning of the war in 2022. It could mollify Polish farmers hit by competition from Ukrainian products.
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