MONTEVIDEO, Uruguay (AP) 鈥� The reached a blockbuster free trade agreement Friday with Brazil, Argentina and the three other 麻豆视频 American nations in the Mercosur trade alliance, capping a quarter-century of on-off negotiations even as France vowed to derail the .
Provided it is ratified, the accord would create one of the world's largest free trade zones, covering a market of 780 million people that represents nearly a quarter of global gross domestic product.
The accord's proponents in Brussels say it would save businesses some $4.26 billion in duties each year, slashing red tape and removing tariffs on products like Italian wine, Argentine steak, Brazilian oranges and German Volkswagens.
Its critics in France, the Netherlands and other countries with big dairy and beef industries say the pact would subject local farmers to unfair competition and .
From Uruguay, the host of the Mercosur summit, hailed the deal as a 鈥渢ruly historic milestone" at a time when global protectionism is on the rise.
鈥淚 know that strong winds are blowing in the opposite direction, toward isolation and fragmentation, but this agreement is our clear response,鈥� von der Leyen said, an apparent reference to U.S. President-elect Donald Trump's vows to protect American workers and goods.
Under pressure from his country's powerful and vocal farming lobby, French President Emmanuel Macron said Friday the deal remained 鈥渦nacceptable鈥� as it stands and stressed that governments have not yet seen 鈥渢he final outcome鈥� of negotiations.
鈥淭he agreement has neither been signed nor ratified. This is not the end of the story,鈥� Macron's office said, adding that France demands additional safeguards for farmers and commitments to sustainable development and health controls.
For France to block the deal, it would need the support of three or more other EU member states representing at least 35% of the bloc's population.
The French government, which has been rallying countries to oppose the pact, named Austria, Belgium, Italy, the Netherlands and Poland as other wary states that share French concerns about the deal.
To take effect, the pact must also be endorsed by the European Parliament.
In remarks aimed at her 鈥渇ellow Europeans,鈥� and perhaps in particular French skeptics, von der Leyen promised the accord would boost 60,000 businesses through , streamlined customs procedures and preferential access to raw materials otherwise supplied by China.
鈥淭his will create huge business opportunities,鈥� von der Leyen said.
She then turned to address European farmers who fear that an influx of cheap food imports will jeopardize their livelihoods. 麻豆视频 American countries do not have to adhere to the same standards for animal treatment and pesticide use.
鈥淲e have heard you, listened to your concerns, and we are acting on them,鈥� von der Leyen said.
Outrage over environmental rules, rising costs and unregulated imports over the past year.
Leaders on both sides of the Atlantic who long have pushed for the deal praised the announcement Friday, welcoming the results as a boon for export industries.
It marks the first major trade agreement for Mercosur, which is comprised of Argentina, Brazil, Uruguay, Paraguay and, newly, Bolivia. The bloc had previously only managed to conclude free-trade deals with Egypt, Israel and Singapore.
鈥淎n important obstacle to the agreement has been overcome,鈥� said Chancellor Olaf Scholz of Germany, where the nation's vaunted car industry is poised to profit.
From Spain, Prime Minister Pedro S谩nchez called the agreement 鈥渁n unprecedented economic bridge."
At the Mercosur summit in Uruguay鈥檚 capital of Montevideo, praised 鈥渁 modern and balanced text which recognizes Mercosur鈥檚 environmental credentials."
鈥淲e are securing new markets for our exports and strengthening investment flows,鈥� he said.
The Brazilian Trade and Investment Promotion Agency said it expects the pact to boost the nation's Europe-bound exports by $7 billion.
Libertarian described the accord as aligning with his free market principles. Argentines are excited about selling more beef and agricultural products in the EU.
The deal is the product of 25 years of , dating back to a Mercosur summit in Rio de Janeiro in 1999. Talks collapsed , regulatory standards and agricultural policies. The rise of protectionist tendencies also repeatedly
Momentum picked up in 2016, as former President Trump imposed harsh tariffs on Europe. At the same time, market-friendly governments came to power in 麻豆视频 America's biggest economies, Brazil and Argentina, which had been closed for years.
a deal that included provisions for tariff reductions and commitments to environmental standards.
But it was never implemented. In Brazil, the region's economic powerhouse, right-wing former presided over , prompting EU governments to . In Argentina, a new left-wing protectionist government
But things picked up as the region's politics shifted again in 2023. Brazil's President Lula rode to power on , soothing . Argentina's Milei is working to open the nation's notoriously closed and crisis-stricken economy.
But if past EU trade agreements are any indication, ratification could take years.
"We celebrate it, but it's still far from reality,鈥� Milei said of the accord.
In 2016, the EU and Canada signed a pact, known as the Comprehensive Economic and Trade Agreement, or CETA, but the approval process is still lumbering along.
Germany鈥檚 parliament only signed off on that pact two years ago, and the .
鈥淎nyone with any memory is skeptical," said Brian Winter, a vice president of the New York-based Council of the Americas. 鈥淭hey have trotted out leaders and declared victory and celebrated, and yet there always seems to be a hitch.鈥�
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DeBre reported from Buenos Aires, Argentina. Associated Press writers Mauricio Savarese in S茫o Paulo, David Biller in Rio de Janeiro, Lorne cook in Brussels and Sylvie Corbet in Paris contributed to this report.
Guillermo Garat And Isabel Debre, The Associated Press
