(Bloomberg) -- European Commission President Ursula von der Leyen arrived in Uruguay to attend the Mercosur summit as the bloc aims to conclude a long-sought trade deal with key Latin American nations.
Technical talks have been ongoing with Argentina, Brazil, Uruguay and Paraguay over what would be the biggest trade agreement ever concluded by the European bloc.
“The finish line of the EU-Mercosur agreement is in sight,” von der Leyen said in a post on X. “Let’s work, let’s cross it.”
Von der Leyen’s decision to attend the summit in Montevideo, which opened Thursday, is a sign that negotiators may clinch a deal by Friday, according to people familiar with the matter who were granted anonymity to discuss sensitive issues.
But France, one of the deal’s most vocal opponents, said Thursday that the draft agreement is unacceptable, with President Emmanuel Macron’s office posting on X that he reiterated that stance to von der Leyen.
The trade deal would reduce tariffs for most European Union exports to some of the largest Latin American economies, while opening the European market more to imports including agricultural products. It would also strengthen the European footprint in a region where China has made inroads in recent years.
It will be particularly important for car exporters, who will see the current 35% tariffs gradually removed over a number of years. High duties will be also eliminated for other industrial products such as car parts, machinery, chemicals, clothing and textiles.
Uruguayan Foreign Minister Omar Paganini told reporters in Montevideo that the countries are preparing to announce a deal Friday morning after finalizing the details.
“Good news is expected tomorrow,” Paganini said Thursday after a meeting between von der Leyen and Uruguayan leader Luis Lacalle Pou.
The agreement, which would create an integrated market of 780 million consumers, still faces a very difficult process of ratification, as key member states including France and Poland have opposed the deal over environmental and regulatory concerns.
The long-delayed Mercosur trade pact was agreed to in principle in 2019 but has mainly been held up by French objections since. If a deal is reached soon, it would come at a difficult time for Macron, who is coping with the collapse of his government.
Germany, which represents around a fifth of the EU population, is a strong backer of the deal, along with Spain.
Brazil is among the Latin American nations pushing hard for a deal.
“What we want is to conclude the negotiations this year,” said Mauricio Lyrio, a secretary at Brazil’s foreign ministry who is leading its negotiations with the EU. “What I can say is that we’re hopeful.”
--With assistance from Ken Parks.
(Updates with Uruguay foreign minister comments from eighth paragraph.)
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