The Mercosur-EU trade agreement is closer to becoming a reality after over 25 years of negotiations, following the approval by a majority of the European Union (EU) member states. 

The deal — which will be signed on Monday, and must then be approved by the European Parliament to enter into force — will be key for Argentina’s exports, although some sectors have concerns over what it could mean for national industries.

The trade accord will allow Argentina and the rest of the Mercosur member states — Brazil, Paraguay and Uruguay — to open their exports market, especially for the agricultural sector, which is the most prominent in the region. 

In turn, it will also grant easier access to manufactured goods and technology from Europe, which are less developed in South America, except for certain industries, like Brazil’s automobile sector.

European countries that specialize in manufacturing, like Germany, have backed the deal, while others with strong agricultural sectors, like France, have strongly opposed it, arguing that the low prices from South American exports will negatively impact local farmers, a practice known as “dumping.”

While Brazil has been the country leading the negotiations, Argentina opposed it at times. In the past, Peronist governments argued that Europe’s conditions meant the deal was not........

© Buenos Aires Herald