Feb 24 • 14:06 UTC 🇦🇷 Argentina La Nacion (ES)

Commercial inertia: why is the EU so reluctant to implement the EU-Mercosur agreement?

The article discusses the EU's hesitation to move forward with the EU-Mercosur trade agreement, particularly in light of French opposition and declining agricultural competitiveness.

The article examines the EU's reluctance to implement the EU-Mercosur trade agreement, highlighting France's strong opposition as a significant roadblock. Despite the shifting global dynamics, where U.S. dominance is declining, the EU appears hesitant to embrace necessary changes within the international order. European legislators have voted to halt the agreement, signaling deep-rooted concerns about the implications for local agriculture and market competition.

France's apprehensions stem from its agricultural sector's declining competitiveness, as articulated by the Robert Schuman Foundation. Compared to other European nations, French agricultural income growth has lagged notably behind, raising fears that the EU-Mercosur agreement could exacerbate these disparities by opening the market to competition from South American producers, potentially undermining domestic agriculture. This context provides insight into the broader implications for the EU's economic strategy and trade relations.

The article also discusses the significance of this trade agreement not just for the member states involved, but for the overall geopolitical landscape. As these nations ponder their roles within global trade, the reluctance from the EU to engage fully with Mercosur might signify a missed opportunity to solidify alliances and foster economic resilience in an era of changing global relationships. Thus, the discussions surrounding the EU-Mercosur deal symbolize larger tensions within the EU about balancing domestic interests with international commitments.

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