Von der Leyen hustling to sign the EU-Mercosur treaty? “Unacceptable. This only concerns the Commission”, according to the Élysée

“Equity and common benefits”. “We listened to our farmers’ concerns and acted accordingly.” “Preserving the Amazon is a responsibility shared by humanity“, the president wanted to be reassuring, while she stood alongside the president of Uruguay, Luis Alberto Pou, from whom she succeeded at the perch to confirm the success of the discussions, but also the Argentinian Javier Milei , the Paraguayan Santiago Peña and the Brazilian Lula, whose country is one of the heavyweights of Mercosur.

One of the notable points of development compared to past discussions is the fact that if one of the countries abandons the agreement, the EU will be able to suspend the agreement partially or completely.

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“Today is clearly not the end of the story. What is happening in Montevideo is not a signing of the agreement.”

4 billion in customs duties vaporized?

“This agreement is a victory for Europe: 60,000 companies today export to Mercosur, including 30,000 small and medium-sized companies. They benefit from reduced customs duties, simplified customs procedures and preferential access to certain essential raw materials This will create huge business opportunities.“, she insisted again, specifying that the agreement protects 350 European geographical indications, guarantees European standards in health and food and would allow European companies to dodge almost 4 billion euros in costs. customs. The good deal.

Ursula von der Leyen flew to Montevideo to land the trade agreement between the European Union and Mercosur

Let us remember, for example, that among European food products exported to Mercosur, customs duties rise to 20% for chocolate – a Belgian product of excellence –, 10% for olive oil even up to 35% for everything. which is wine and beer. A huge shortfall and a brake on the competitiveness of European companies in South America, if the Commission’s position is anything to go by.

Le Mercosur ©IPM Graphics

And while protectionism threatens in the United States and China, the European Union (EU) is therefore trying to position itself on this South American market, also heavily invested by Beijing. For example, in Brazil, China represented 5% of imports in 2000… compared to almost 25% now. Europe could therefore have a card to play and find its place, according to the president. But if Olaf Scholz, the German chancellor, welcomed the agreement – ​​which could potentially give some breathing room to the suffering German automobile industry – does not see it the same way.

“This is a crucial occasion”: after a little dance, Princess Astrid launches into the fiery EU-Mercosur debate

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“The agreement remains unacceptable as it stands,” declared the Élysée late Friday afternoon during discussions with journalists.

The Commission has completed its negotiating work with Mercosur, it is its responsibility, but the agreement has neither been signed nor ratified. So this is not the end of the story. There is no entry into force of the agreement with Mercosur”she clarified, while Macron’s France is going through an unprecedented crisis in parallel with the fall of the Barnier government.

The EU already exports 84 billion euros to Mercosur countries

The underappreciated issue of critical materials

Note also that the EU already exports 84 billion euros to the Mercosur countries, including 55.7 billion in goods and the rest in services. The trade balance is in favor of the Union (which therefore exports more than it imports) and Mercosur mainly exports goods to the EU (including agricultural products), for around 53.8 billion euros. The figures for services are also more difficult to find for services.

Princess Astrid on an economic mission to the heart of São Paulo, the city of “helicopter taxis”

Finally, among the elements most rarely mentioned, there are critical metals and materials. The President of the European Commission hopes to move towards this agreement in order to contribute to the EU’s efforts to establish strategic autonomy in the sector. Currently, the EU sources 12% of its aluminum from Brazil and 9% of its silicon (useful for semiconductors, photovoltaic panels, electronic components) and 6% of its lithium from Argentina ( essential for batteries). Diversification, after embargoes on Russian raw materials and tensions over Chinese supplies, may seem essential for the EU. But this is on condition of ultimately convincing all the countries of the Union. And that’s no small feat.

Behind the scenes at night of the princely mission: “There are still those damn French people in front of us”

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