On Friday, European Commission chief Ursula von der Leyen announced that the EU and four South American countries had signed a controversial trade deal opposed by France and many European farmers.

„It's a win-win agreement“, said Ms von der Leyen during her visit to Uruguay, where she attended a summit of the „Mercosur“ bloc. The bloc includes Uruguay, Brazil, Argentina and Paraguay.

The agreement aims to create a free trade area connecting more than 700 million people.

Nearly a quarter of a century in the making, von der Leyen called the agreement a "truly historic achievement", building bridges of trade at a time when "strong winds are blowing in the opposite direction, towards isolation and fragmentation".

Although the negotiations are complete, the EU-Mercosur agreement still needs to be approved by at least 15 of the 27 EU Member States, representing 65% of the EU's population.

France, which has been hit by successive farmers' protests over fears that the deal will encourage unfair competition, has tried to form a blocking minority of EU countries.

Poland has stood firmly on the side of France. Italian government sources say Rome believes that "the right conditions have not been agreed" to support the deal. The Netherlands and Austria also have doubts.

Germany, on the other hand, eager to open up as many trade routes as possible in difficult times for its manufacturing sector, has come out strongly in favour of the EU-Mercosur agreement. It was supported by Spain.

Message for EU farmers

The outline of a joint agreement was agreed back in 2019, but was never ratified, amid concerns about, among other things, the impact of Brazilian agriculture on climate change.

U. von der Leyen also alluded to these concerns, saying: „The agreement between the EU and „Mercosur“ reflects our strong commitment to the Paris Agreement (on climate change) and to fight deforestation.“

She said that the efforts of the government of Brazilian President Luiz Inacio Lula da Silva to protect the Amazon „are welcome and necessary, but its preservation is the shared responsibility of all humanity“.

She also addressed European farmers, saying: "We have heard you, we have listened to your concerns and we are taking action. This agreement includes clear safeguards that will protect your livelihoods.“

Ratification of the agreement will make it easier for the EU to export cars, machinery and pharmaceuticals to South America.

Brazil and its neighbours will in turn be able to sell meat, sugar, rice, honey, soybeans and other products to Europeans with fewer restrictions.

The agreement aims to eliminate most import taxes between the EU and Mercosur and create a vast free trade area covering more than 700 million consumers.

Sources familiar with the negotiations said the agreement will include changes to several chapters, including government contracts, services, intellectual property and environmental protection.

French President Emmanuel Macron on Thursday reiterated a warning to Ms von der Leyen that the agreement „in its current state is unacceptable“.