Germany and Uruguay want a quick ratification of the free trade agreement between the European Union and the Latin American trade bloc Mercosur, German President Frank-Walter Steinmeier said on Sunday.
“We want, more than that, we need this Mercosur free trade agreement,” Steinmeier said at a press conference with Uruguay’s new President Yamandú Orsi in Montevideo.
However, he added that some “campaigning” was still needed with some European member states.
An agreement between the EU and the Mercosur states – Brazil, Argentina, Uruguay and Paraguay – would create one of the world’s largest free trade zones with a population of more than 700 million. Its main aim is to reduce tariffs and thus boost trade.
After more than 20 years of talks, the EU Commission and the South American Mercosur alliance concluded negotiations on a vast free-trade area in December.
But there is resistance on the European side in countries such as France, Italy and Poland. German farmers meanwhile fear new competition that can produce much more cheaply than they can.
Uruguay’s President Orsi also called for the rapid implementation of the agreement. Noting how long the negotiations had taken, he thanked Germany for its involvement, saying: “The German support was particularly important for us.”
Orsi and Steinmeier jointly expressed hope that Argentina, with its ultra-liberal President Javier Milei, would not withdraw from the agreement as Steinmeier indicated this would have “implications for the entire concept.”
