Summary
France is trying to delay the European Union's decision on a trade deal with the Mercosur group of South American countries. The deal, which needs approval, has been in the works for 25 years and aims to reduce tariffs to increase trade. French farmers and others worry the agreement will harm their businesses by bringing in cheaper imports from South America.
Key Facts
- France wants to postpone the EU vote on the trade deal with Mercosur, which includes Argentina, Brazil, Paraguay, and Uruguay.
- The trade deal would create the largest free-trade agreement for the EU in terms of tariff reductions.
- French farmers are worried about cheap agricultural imports from Mercosur, which could impact their livelihoods.
- The EU-Mercosur deal is designed to lower trade barriers and boost the flow of goods and services between the regions.
- High tariff rates currently exist, with Mercosur charging up to 35% on EU products and the EU imposing duties of up to 15% on South American goods.
- France is Europe’s largest agricultural producer and seeks more protections for its farmers before agreeing to the deal.
- The European Commission President plans to visit Brazil to sign the agreement, aiming to form the world’s biggest free-trade area.
- France has criticized the proposed safeguards by the European Commission as inadequate.
