by supplychainreport
European Union member states are set to vote next week on the approval of a trade agreement with the South American Mercosur bloc, Denmark, which holds the EU’s rotating presidency, confirmed on Friday.
The deal, negotiated with Argentina, Brazil, Paraguay, and Uruguay, represents the EU’s largest trade agreement in over 25 years. It is designed to expand market access, reduce tariffs, and strengthen trade flows between Europe and South America, supporting EU exporters and supply chain integration.
Approval requires a qualified majority of 15 EU members representing 65% of the EU population. While Germany, Spain, and the Nordic countries have signaled support, Poland has indicated opposition, and the positions of France, Italy, and a few other members remain undecided.
To address concerns from some EU members regarding agricultural imports, the European Commission included a mechanism allowing suspension of preferential access for certain products such as beef, poultry, and sugar. Supporters highlight the agreement’s role in diversifying EU trade, securing supply chains, and enhancing access to strategic commodities.
If approved, Commission President Ursula von der Leyen is expected to travel to Brazil to formalize the agreement on December 20, marking a significant milestone in EU-South America trade relations.
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