The European Commission has spent years negotiating a free trade agreement with Argentina, Brazil, Paraguay, and Uruguay, aiming to establish the largest free trade zone globally. These negotiations were concluded at the end of last year; however, the agreement still requires approval from the European member states and the European Parliament for provisional implementation.
The deal raises concerns within the European agricultural sector, which fears facing unfair competition from the South American bloc. As a result, member states such as France, Italy, and Poland are hesitant about the treaty. A qualified majority is necessary for the agreement to take effect provisionally, meaning at least four member states representing a minimum of 35 percent of the EU population must vote against it to block the deal.
In Belgium, support for the agreement is also tepid. The Walloon government rejects the Mercosur deal, and there is a lack of consensus among coalition partners at the federal and Flemish levels. Because a unanimous position from all government tiers is needed for Belgium’s stance, the country will have to abstain from the European vote, a decision reaffirmed during a recent intergovernmental meeting.
According to Federal Minister of Agriculture David Clarinval (MR), whose party heads the Walloon government, while the Mercosur agreement could benefit most industries and agricultural sectors like dairy and potatoes, there are concerns that other sectors, particularly sugar and beef, may face adverse effects, despite the proposed safeguard measures.
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