Key facts
- Germany's foreign minister Johann Wadephul stated the EU-Mercosur trade agreement still has issues to resolve before ratification.
- He expressed confidence that the problems can be overcome.
- The comments were made following a Mercosur summit where export quotas were discussed.
- The EU and Mercosur signed their trade agreement after 25 years of negotiations.
- Public disputes have involved farmer protections, legal questions, environmental concerns, and quota allocation.
Germany's foreign minister, Johann Wadephul, indicated on Wednesday that the European Union's trade agreement with the Mercosur bloc still faces unresolved issues that must be addressed before it can be ratified. Despite these obstacles, Wadephul expressed confidence that they are surmountable.
Wadephul's remarks came a day after a Mercosur summit in Paraguay, where member nations deliberated on the distribution of export quotas within the framework of their recently concluded deal with the EU. The German official was present as part of a multi-day tour of South America.
The Mercosur bloc, comprising Argentina, Brazil, Paraguay, and Uruguay, finalized the trade agreement with the EU in January, concluding a negotiation process that spanned 25 years. The accord provisionally took effect four months later.
"Implementation will still take some time. There will surely be some problems, but they are problems that can be resolved," Wadephul stated during a press conference in Buenos Aires, without specifying the nature of the remaining hurdles.
He added, "The decisive steps have already been taken. We want this agreement, and we will be able to resolve the problems that arise."
Public disagreements surrounding the accord have primarily focused on protections for EU farmers, opposition from certain member states, legal complexities concerning ratification and provisional application, and environmental concerns such as deforestation. On the Mercosur side, the allocation of export quotas remains an unresolved issue.
The EU-Mercosur agreement aims to establish a free trade area through the reduction and gradual elimination of tariffs. It is expected to provide immediate benefits for a wide array of products, with phased tariff reductions for others.
Trade between the two blocs, which collectively represent a market of 700 million people, reached 111 billion euros ($130.8 billion) in 2024.
During the meeting, Wadephul and Argentine Foreign Minister Pablo Quirno also announced a memorandum of understanding focused on critical minerals, intended to expand supply chains amidst rising demand for minerals like lithium and copper, driven by the energy transition.