German FM says sealing EU-Mercosur deal is ‘essential’

BRUSSELS

German Foreign Minister Annalena Baerbock speaks during a press briefing at a hotel in Beijing, Monday, Dec. 2, 2024

German Foreign Minister Annalena Baerbock has said it was "essential" for the European Union to finalise a trade deal with Latin America's Mercosur this week, despite opposition from major EU countries, including France.

"I believe it is essential that the EU Commission now finalises the Mercosur free trade agreement politically," Baerbock told reporters in Brussels, calling a summit of the South American bloc on DEc. 6 in Montevideo "probably the last opportunity" to do so.

The blockbuster deal between the 27-country EU and Mercosur countries, Brazil, Argentina, Paraguay and Uruguay, was sketched out in 2019 but progress has stalled, with France leading opposition to a deal it fears will harm its farm sector.

Trade policy for the whole EU is determined by the European Commission, run by Ursula von der Leyen, on the basis of what most EU member states agree, and Brussels has launched a renewed push to get the deal over the finish line.

Germany and Spain have both said they want a swift completion of the deal, which has been 25 years in the making and would create the world's biggest free trade zone.

France would need three other EU countries to join it to form a blocking minority against the deal. Poland has publicly rallied to its side.

"It is high time to take the partnership with the Mercosur countries to the next level," Baerbock said.

"The president of the commission has a full mandate to do this and should, in our view, make use of it," she said.

"From a German perspective, the Mercosur summit in Montevideo on Friday is probably the last opportunity for this," Baerbock added, saying a conclusion would be "a win-win situation for both sides."