Historic EU-Mercosur Trade Deal on the Horizon Amid Controversy

European Commission President Ursula von der Leyen visits Uruguay to finalize a crucial EU-Mercosur trade deal involving major agricultural nations. France opposes the agreement due to environmental and economic concerns, while countries like Germany argue its importance for diversifying trade amidst geopolitical tensions.

European Commission President Ursula von der Leyen arrived in Uruguay on Thursday, aiming to finalize a long-delayed trade deal between the European Union and South American bloc Mercosur, which includes major agricultural nations like Brazil and Argentina. Von der Leyen emphasized the benefits of the agreement, describing it as the largest trade and investment partnership the world has seen.

The Mercosur bloc, including Paraguay and Uruguay, plans to support the trade deal in Montevideo. Despite a previous agreement in 2019 that was not ratified, sources indicate the deal is complete and set to be announced by the heads of state. Final details addressing environmental concerns and government purchases have reportedly been resolved.

However, von der Leyen faces domestic opposition. European farmers are concerned about a potential influx of less-regulated South American commodities, such as beef. France, led by President Emmanuel Macron, declared the deal "unacceptable" amid a political crisis, while Germany views it as essential for trade diversification and accessing minerals needed for Europe's green transition.

(With inputs from agencies.)