German chancellor Friedrich Merz Friday hailed a ‘milestone’ after European Union countries approved a trade deal with the South American Mercosur bloc while business groups also welcomed the news.
‘The approval of the EU-Mercosur Agreement is a milestone in European trade policy and an important signal of our strategic sovereignty and capacity to act,’ Merz said, after a majority of the bloc’s members backed the controversial pact in a vote.
‘However, 25 years of negotiations were too long. Now it is important to conclude the next free trade agreements quickly.’
German finance minister Lars Klingbeil welcomed the deal as an important signal in support of free trade.
‘While others are closing themselves off and pursuing increasingly aggressive trade policies, we are focusing on new partnerships’.
The accord is deeply divisive — while it was backed by business, it has been fiercely opposed by many European farmers, and the EU had to override opposition led by France to the pact.
Berlin has long been a vocal supporter of the deal which it believes will open up new markets for its export-dependent economy as it struggles to emerge from a long period of stagnation.
Germany’s VDA auto industry association welcomed the approval of the accord as ‘long overdue and very good news… especially for Germany as an exporting country’.
‘The EU-Mercosur agreement opens up considerable opportunities for the automotive industry,’ said the association’s boss Hildegard Mueller.
Auto parts shipped to Mercosur countries are currently subject to tariffs of up to 18 per cent while passengers cars face levies of up to 35 per cent, she said.
The VCI chemical industry federation hailed approval of the deal as a ‘good day for Europe’.
‘The EU is sending a strong signal in difficult times: Europe wants to help shape the future, not just stand by and watch,’ said the group’s chief Wolfgang Grosse Entrup.