What's Happening?
The European Parliament is preparing for three critical votes that could significantly alter or derail the EU-Mercosur trade agreement. This deal, which has been in negotiation for over two decades, requires approval from both EU member states and lawmakers.
The first vote, scheduled for the December plenary session, involves a bilateral safeguard clause for agricultural products. This clause aims to protect EU farmers from cheaper South American imports by allowing temporary withdrawal of tariff preferences. The clause also includes a reciprocity obligation, requiring South American exporters to meet EU production standards. The outcome of these votes could influence the finalization of the trade deal.
Why It's Important?
The EU-Mercosur trade deal is a major economic agreement that could impact trade relations between the EU and South American countries. The inclusion of safeguard measures is crucial for protecting EU farmers and ensuring fair competition. However, the proposed changes could face resistance from Mercosur countries and complicate negotiations. The deal's approval is vital for strengthening economic ties and promoting sustainable trade practices. The European Parliament's decisions will have significant implications for EU trade policy and its approach to international agreements, potentially affecting economic growth and market access for both regions.
What's Next?
If the safeguard measures are approved, they will need to be negotiated with EU member states, potentially fast-tracking the deal's finalization. However, the measures are controversial and may face legal challenges, particularly regarding their compliance with WTO rules. The European Parliament will also consider a legal challenge to the deal's division into two parts, which could delay ratification. The final ratification vote is expected to be contentious, with potential opposition from various political groups. The outcome of these votes will determine the future of the EU-Mercosur trade agreement and its impact on international trade relations.
