Von der Leyen Travels to Finalize Controversial Latin America Trade Agreement

At a summit with the Mercosur trade bloc—which includes Brazil, Argentina, Uruguay, Paraguay, and Bolivia—European Commission President Ursula von der Leyen managed to finalize a long-discussed trade deal, despite facing staunch opposition from France.

In France, political leaders across the spectrum had united in condemning the agreement, which has been under negotiation for 25 years. This domestic resistance culminated in a dramatic political crisis that led to the collapse of Michel Barnier’s government on Wednesday—the shortest tenure of any administration in the history of France’s Fifth Republic. The fallout left Paris weakened and unable to block the trade pact.

Simultaneously, Germany ramped up its efforts to back von der Leyen, herself a German national, in pushing the deal through. German Foreign Minister Annalena Baerbock personally lobbied the Commission president to ensure the agreement was finalized this week.

The sharp divide between France and Germany over trade policy highlights deeper tensions within the EU. If this conflict escalates, it could raise questions about the European Commission’s authority as the lead negotiator for trade agreements on behalf of the 27-member bloc, as well as the overall integrity of the EU’s vast single market, which serves 450 million citizens.