EU Softens Stand on Trade Accord with South America's Mercosur

The European Commission made strides on Wednesday towards approving a landmark trade agreement with South America's Mercosur bloc. The deal, marked by promises of possible limits on farm imports, is aimed at easing France's main criticisms. The accord between the EU and Argentina, Brazil, Paraguay, and Uruguay was reached last December, more than 25 years after negotiations started.

Approval requires a vote in the European Parliament and a qualified majority among EU governments, representing 65% of the bloc's population. Proponents such as Germany and Spain view the Mercosur deal as a strategic way to offset trade losses due to US tariffs and diminish China's influence by diversifying trade ties, especially for critical minerals.

While France and Poland have voiced opposition, the European Commission proposed a mechanism to suspend preferential Mercosur access for certain farm products like beef if import volumes surge or prices drop significantly. This measure aims to quell farmers' concerns, despite ongoing protests against potential economic and environmental impacts.

(With inputs from agencies.)