Tag - Mercosur

EU went to ‘unprecedented lengths’ to win over Mercosur skeptics
BRUSSELS — The European Commission has done everything in its power to accommodate the concerns of member countries over the EU’s trade deal with the Latin American Mercosur bloc and get it over the finish line, Trade Commissioner Maroš Šefčovič told POLITICO. “I hope we will pass the test this week because we really went to unprecedented lengths to address the concerns which have been presented to us,” Šefčovič said in an interview on Monday.  “Now it’s a matter of credibility, and it’s a matter of being strategic,” he stressed, explaining that the huge trade deal is vital for the European Union at a time of increasingly assertive behavior by China and the United States. “Mercosur very much reflects our ambition to play a strategic role in trade, to confirm that we are the biggest trader on this planet.” The commissioner’s remarks come as time is running short to hold a vote among member countries that would allow Commission President Ursula von der Leyen to fly to Brazil on Dec. 20 for a signing ceremony with the Mercosur countries — Brazil, Argentina, Uruguay and Paraguay. “The last miles are always the most difficult,” Šefčovič added. “But I really hope that we can do it this week because I understand the anxiety on the side of our Latin American partners.”  The vote in the Council of the EU, the bloc’s intergovernmental branch, has still to be scheduled. To pass, it would need to win the support of a qualified majority of 15 member countries representing 65 percent of the bloc’s population. It’s not clear whether France — the EU country most strongly opposed to the deal — can muster a blocking minority. If Paris loses, it would be the first time the EU has concluded a big trade deal against the wishes of a major founding member. France, on Sunday evening, called for the vote to be postponed, widening a rift within the bloc over the controversial pact that has been under negotiation for more than 25 years. Several pro-deal countries warn that the holdup risks killing the trade deal, concerned that further stalling it could embolden opposition in the European Parliament or complicate next steps when Paraguay, which is skeptical toward the agreement, takes over the presidency of the Mercosur bloc from current holder Brazil. Asked whether Brussels had a Plan B if the vote does not take place on time, Šefčovič declined to speculate. He instead put the focus on a separate vote on Tuesday in the European Parliament on additional farm market safeguards proposed by the Commission to address French concerns. “There are still expectations on how much we can advance with some of the measures which are not yet approved, particularly in the European Parliament,” he stressed.  “If you look at the safeguard regulation, we never did anything like this before. It’s the first [time] ever. It’s, I would say, very, very far reaching.” 
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Agriculture and Food
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France calls to delay crunch Mercosur vote
BRUSSELS — The French government called on Sunday to postpone a crucial vote by countries on the EU-Mercosur trade agreement, widening a rift within the bloc over the controversial pact. “France is asking for the December deadlines to be pushed back so we can keep working and get the legitimate protections our European agriculture needs,” the office of Prime Minister Sébastien Lecornu said Sunday evening. The statement confirmed a POLITICO report on Thursday that Paris was pushing for a delay. It comes within sight of the finish line for the European Union to finally close the agreement with Argentina, Brazil, Uruguay and Paraguay that has been in negotiations for over 25 years and would create a common market of over 700 million people. Denmark, which holds the presidency of the Council of the EU, has vowed to hold the vote in time for European Commission President Ursula von der Leyen to fly to Brazil on Dec. 20 to sign the deal. Several countries warn that the holdup risks ultimately killing the trade deal, concerned that further stalling it could embolden opposition in the European Parliament or complicate next steps when Paraguay, which is skeptical toward the agreement, takes over the presidency of the Mercosur bloc from current holder Brazil. Pro-deal countries, including Germany, Sweden and Spain, argue that France’s concerns have already been accommodated, pointing to proposed additional safeguards designed to protect European farmers in the event of a surge in Latin American beef or poultry imports. But with those safeguards still not finalized, France says it still can’t back the deal, wary that it could enrage the country’s politically powerful farming community. Brussels also announced this month it was planning to strengthen its border controls on food, animal and plant imports. “These advances are still incomplete and must be finalized and implemented in an operational, robust and effective manner in order to produce and appreciate their full effects,” Lecornu’s office said. Denmark, which holds the presidency of the Council of the EU, has vowed to hold the vote in time for European Commission President Ursula von der Leyen to fly to Brazil on Dec. 20 to sign the deal. | Wagner Meier/Getty Images Despite Denmark’s resolve to hold the vote in time, final talks among EU member countries may not be wrapped up before a summit of European leaders on Thursday and Friday this week. A big farmers’ protest is planned in Brussels on Thursday. The Commission declined to comment.
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EU’s vote on Mercosur trade deal to take place next week, Denmark confirms
BRUSSELS — Denmark is holding the line and pressing ahead with plans to schedule a crucial vote of EU ambassadors on the EU-Mercosur trade deal next week, in a tug-of-war splitting countries across the bloc. “In the planning of the Danish presidency, the intention is to have the vote on the Mercosur agreement next week to enable the Commission President to sign the agreement in Brazil on Dec. 20,” an official with the Danish presidency of the Council of the EU told POLITICO. This is the first official confirmation from Copenhagen that it will go ahead with scheduling the vote over the deal with the Latin American countries in the coming days, despite warnings from France, Poland and Italy that the texts as they stand would not garner their support.  This risks leaving the Danish presidency of the Council short of the supermajority needed to get the deal over the line. Under EU rules, this would require the support of a “qualified” majority of EU member countries — meaning 15 of the bloc’s 27 members representing 65 percent of its population. The outcome of the vote will determine whether European Commission President Ursula von der Leyen can fly, as is now planned, to Brazil on Dec. 20 for a signing ceremony with her Mercosur counterparts. France however has been playing for time in an effort to delay its approval of the accord, which has been more than 25 years in the making — a strategy several diplomats warn could ultimately kill the trade deal.  They cite fears that further stalling could embolden opposition in the European Parliament or complicate the next steps when Paraguay, which is more skeptical of the agreement, takes over the presidency of the Mercosur bloc. “If we can’t agree on Mercosur, we don’t need to talk about European sovereignty anymore. We will make ourselves geopolitically irrelevant,” said a senior EU diplomat. European leaders, including French President Emmanuel Macron, are expected to descend on Brussels on Thursday for a high-stakes EU summit. While not formally on the agenda, the trade deal with Brazil, Argentina, Paraguay and Uruguay is expected to loom large. A farmers demonstration is also expected in Brussels on the same day.  Countries backing the deal, including Germany and Sweden, argue that France has already been accommodated, pointing to proposed additional safeguards designed to protect European farmers in the event of a surge in Latin American beef or poultry imports. The instrument, which still requires validation by EU institutions, was a proposal from the Commission to placate Poland and France, whose influential farming constituencies worry they would be undercut by Latin American beef or poultry.  The texts submitted for the upcoming vote were published last week and include a temporary strengthened safeguard, committing to closely monitor market disruptions — one of the key conditions for Paris to back the deal.
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Foreign Affairs
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France seeks to delay crunch vote on EU’s Mercosur mega deal
BRUSSELS — France is playing for time over a crucial vote on the EU’s trade mega deal with the Latin American Mercosur bloc, three EU diplomats told POLITICO, in a strategy that one warned could kill the long-awaited accord.  With U.S. President Donald Trump having slammed Europe as “weak” and “decaying,” the European Commission is racing to prove otherwise — by rushing before Christmas to lock in the trade deal with Mercosur, which groups Argentina, Brazil, Paraguay and Uruguay. Now, just over a week before Commission President Ursula von der Leyen hopes to fly to Brazil for a signing ceremony, France is raising the alarm that its longstanding demands haven’t been met. Paris warns it won’t be able to support the pact in a looming vote by member countries, suggesting it be held in January instead, according to the diplomats.  That could leave the Danish presidency of the Council short of the supermajority needed to get the deal over the line. Under EU rules this would require the support of a “qualified” majority of EU member countries — meaning 15 of the bloc’s 27 member countries representing 65 percent of its population. The French government reiterated on Thursday that it wasn’t satisfied with the agreement and that its final decision will depend on the progress made toward its demands.  “France is a big agricultural power, we defend our agricultural interests very firmly in these negotiations … We continue working on this agreement, which is not acceptable as it stands on the day I am speaking to you,” Foreign Ministry spokesperson Pascal Confavreux told POLITICO. Confavreux declined to say when asked whether France was pushing to delay the vote to January. A senior EU diplomat warned that the long-awaited trade deal — which has been a quarter century in the making and would create a common market of over 700 million people — would not survive another delay.  “If [von der Leyen] does not sign it, if we do not allow her to sign it on the 20th, it’s dead,” said the diplomat, who was granted anonymity to discuss the sensitive matter. “And then we really need to think about whether that’s where we want to be in the world.”  COALITION OF THE UNWILLING Ireland, which remains one of the more skeptical countries due to its large farming constituency, said Thursday it was “working with like-minded countries” on its position on the agreement — referring to a so-called coalition of the unwilling that has varied over time and included countries like Poland and Austria.  “The key question now is whether a blocking minority still exists. And I think the jury is still a little out on that,” said Deputy Prime Minister Simon Harris. The stalling tactics will infuriate pro-Mercosur nations led by Germany, which argue that the French have already been accommodated, including by the proposal of additional safeguards to protect European farmers in case Latin American beef or poultry flood EU markets.  Paris is adamant that its three core conditions — the inclusion of “mirror clauses,” stronger sanitary controls, and the agricultural safeguards — have still not been met.  A separate plenary vote still needs to be held in the European Parliament this coming Tuesday on the farm safeguards. The chamber’s trade committee last week approved compromise amendments to tighten the protections. Yet a late flood of new amendments could complicate matters just two days before EU leaders are due to hold their year-end summit in Brussels. A diplomat from one Mercosur country said the signing date was still on: “We are still talking about Dec. 20.”  “Nobody has abandoned that yet,” said the diplomat, who was also granted anonymity to discuss the extremely sensitive matter.  Bloomberg first reported on the delay.  Giovanna Faggionato and Kathryn Carlson contributed to this report. 
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Notes on a scandal — will a fraud probe upend the EU?
Listen on * Spotify * Apple Music * Amazon Music Brussels was jolted this week by dawn raids and an alleged fraud probe involving current and former senior EU diplomats. Host Sarah Wheaton speaks with Zoya Sheftalovich — a longtime Brussels Playbook editor who has just returned from Australia to begin her new role as POLITICO’s chief EU correspondent — and with Max Griera, our European Parliament reporter, to unpack what we know so far, what’s at stake for Ursula von der Leyen, and where the investigation may head next. Then, with Zoya staying in the studio, we’re joined by Senior Climate Correspondent Karl Mathiesen, Trade and Competition Editor Doug Busvine and Defense Editor Jan Cienski to take stock of the Commission’s first year — marked by this very bumpy week. We look at competitiveness, climate, defense and the fast-shifting global landscape — and our panel delivers its score for von der Leyen’s team.
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The EU’s narrow, perilous path to the Mercosur trade deal
BRUSSELS — A jolt of optimism that Brussels and the Latin American countries of Mercosur can finally seal their mammoth trade deal this year has given way to trepidation that everything could fall apart just before the finish line. The biggest hurdle that remains is approving a workaround to protect European farm markets in the event of a sudden influx of produce from the Mercosur bloc, which groups Argentina, Brazil, Paraguay and Uruguay. The safeguards, calibrated in consultation with Paris and presented in early October, seemed enough at first to reassure skeptical politicians and farmers in France and Poland. But the mood in the European Parliament and in some capitals has turned volatile. And with the clock ticking down to a tentative Dec. 20 date for European Commission President Ursula von der Leyen to fly to Brazil for a formal signing ceremony, the path to that successful outcome is narrowing. Brazil’s ambassador to the EU, Pedro Miguel da Costa e Silva, is bullish that the agreement, which has been 25 years in the making and would create a free-trade area spanning nearly 800 million people, can still be done. “What will happen will be exactly what happened with other agreements that the EU negotiated with other countries: In the beginning there was a lot of backlash, but then suddenly people discovered that it was a mutual benefit equation,” da Costa e Silva said at an event in Brussels last week. To close the deal in time, everything needs to go right. European lawmakers must first approve the additional safeguards, after which the Council, the intergovernmental branch of the EU, then needs to sign off on the broader deal. Finally, the Commission must sign it. PARLIAMENT UNCHAINED The Parliament has witnessed chaotic scenes in recent days as pro-Mercosur lawmakers tried, and failed, to fast-track a vote to approve the safeguards. Although seemingly only a technical measure, the safeguard text is a crucial political condition for President Emmanuel Macron of France — the EU’s second-largest country — to back the overall agreement.  The Council has concluded its work on the safeguards, and is waiting for the Parliament to move forward.  The text will now tentatively be put to a committee vote in the Parliament on Dec. 8, followed by a Dec. 16 vote in the plenary — just four days before the planned signing ceremony.   Although seemingly only a technical measure, the safeguard text is a crucial political condition for President Emmanuel Macron of France. | Thierry Nectoux/Gamma-Rapho via Getty Images “We have been negotiating this agreement for 25 years and now we are being told that we must act quickly,” said Céline Imart, a French MEP from the European People’s Party group and a farmer herself.  Adding to the headaches, over 140 lawmakers have called for a resolution seeking a legal opinion from the Court of Justice of the European Union on whether the overall deal is compatible with the European treaties.  That would paralyze the Parliament’s approval of the safeguards until the court — known for its lengthy procedures — rules on the issue. Parliament President Roberta Metsola rejected the request on the grounds that the Council had not yet weighed in on the agreement. Those lawmakers have criticized the decision and are now pushing for further explanations from the Parliament’s own legal service on whether Metsola overstepped her powers.  THE HOME STRETCH With U.S. President Donald Trump breathing down Europe’s neck, fence-sitters like the Netherlands and Italy have come to terms with the fact that the deal would offer a welcome boost for the bloc’s struggling exporters. Even Macron struck a conciliatory tone after meeting Brazil’s Luiz Inácio Lula da Silva in early November.  Still, in the Council, where a qualified majority of EU countries is needed to approve the deal, the battle is not yet won. Poland — one of the countries Brussels had hoped to soothe with the new safeguard rules — this week restated its opposition. “Our position is clearly defined: We will vote against, despite the agreement on safeguards that has been reached,” Michal Baranowski, Poland’s undersecretary of state in the Ministry of Economic Development, said Monday.  Confusion at the highest level hasn’t helped either.  At the last European leaders’ summit in October, German Chancellor Friedrich Merz prematurely announced that EU leaders had unanimously backed the contentious deal.  That forced European Council President António Costa to clarify that he had merely sought to assess next steps with European leaders. France followed up by seeking fresh reassurances that the European market would be protected from agricultural products that don’t meet the bloc’s standards. If the approval process hasn’t already gone off track by then, the EU leaders’ summit on Dec. 18-19 in Brussels could still deliver some last-minute drama before von der Leyen can catch that flight to Brazil. “Ursula von der Leyen already has her tickets to Brazil. It is up to us to ensure that she only goes there for a holiday,” added Imart, the French MEP. 
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EU strains to defend carbon levy as trade tensions engulf COP30
BELÉM, Brazil — The European Union is under pressure to defend its new carbon tariff scheme as trade tensions swamp this year’s global climate talks. Long-simmering diplomatic frictions over the upcoming levy are reaching boiling point in the tropical heat of Belém, with some developing countries pushing for the COP30 conference to effectively condemn the bloc’s green trade measures as protectionist. Trade has taken center stage at this summit, alongside traditional sticking points such as finance, as exporting countries fret over the carbon levy’s looming enforcement on Jan. 1 —together with other new EU policies seeking to combat global deforestation or methane pollution, as well as tariffs on climate-relevant products such as Chinese electric vehicles. “All parties need to cooperate to avoid unilateral measures that might damage international collaboration,” Liu Zhenmin, China’s climate envoy, told POLITICO on Monday. “The world needs a very climate-friendly environment for investment.” While he did not specifically mention the EU, diplomats and civil society observers say there is no question that trade discussions at COP30 have largely targeted the bloc’s measures, particularly the levy, officially known as the carbon border adjustment mechanism (CBAM). To resolve the issue, the Brazilian hosts of this year’s conference on Tuesday put forward a number of suggestions that includes an option to regularly assess measures such as CBAM at United Nations climate talks — anathema to the EU, which is putting up a fight.  EU climate chief Wopke Hoekstra said at a press conference on Monday he was “more than happy” to discuss CBAM, but would “not be lured into the suggestion” that the measure is aimed at restricting trade.  European negotiators in Belém said they fiercely reject any attempt at using U.N. climate talks to settle trade disputes, and expressed discomfort at being singled out. With an eye on China’s decision to curb exports of raw materials, they have also suggested that doing so would not be in the interest of other countries that have put up barriers on goods essential to the global energy transition.  “This is a legitimate question for partners to ask each other,” a French negotiator said of trade concerns. “But there are also other questions about which trade mechanisms are blocking or slowing down the transition. For example, wouldn’t a more open market for critical minerals be more effective in developing a transition away from fossil fuels?”  Perhaps for that reason, China has been more careful than India, Saudi Arabia and African countries in pushing hard on trade in the negotiation rooms, said two European diplomats and one civil society observer, who were granted anonymity to discuss diplomatic issues. “I don’t think that linking trade with climate is a good idea. That’s why we are encouraging trade issues [to] be addressed in trade channels,” said Liu, the Chinese envoy. “We are encouraging the EU to resolve their concerns and their problems with their respective partners bilaterally.” But Liu did express concern that as a result of green trade measures, “the cost for cooperation for the energy transition might be driven up.” One European diplomat and one civil society observer also said Beijing had raised the EU’s tariffs on Chinese EVs at COP30. THE BRUSSELS EFFECT, CLIMATE EDITION The EU maintains that CBAM is a climate measure, not a trade tool. “In order to engage in this process of decarbonisation, you also have to make sure that an open market isn’t driving the deindustrialization of your own economy. You have to make sure that the terms of trade around clean tech and clean energy are free but also fair,” Jake Werksman, the EU’s chief negotiator, said last week at a press conference. Heavy-polluting manufacturers based in the EU, such as steel and cement factories, have to pay around €80 for every ton of carbon they emit. That’s meant to encourage a switch to climate-friendly methods of production, but raises the risk that EU companies will be outcompeted by dirtier, cheaper products from elsewhere.  To balance these competition concerns, the EU’s CBAM will gradually impose a fee on certain goods from countries where companies don’t face similar carbon costs, starting on Jan. 1 next year.  But the EU also sees CBAM as a tool to press other countries to set up a carbon price.  The bloc prides itself on being able to leverage its economic weight into global regulatory power, sometimes dubbed the “Brussels effect.” The levy is only one of several green measures targeting trading partners, with other policies seeking to stop imports of goods linked to deforestation or high methane emissions. This effort has pushed other countries toward stepping up climate action. Turkey has cited CBAM as a key reason for introducing legislation to cut emissions, while a provision in the Mercosur trade agreement effectively prevents Argentina from exiting the Paris Agreement.  Still, that approach doesn’t sit well with everyone.  “We remain deeply concerned by the growing use of unilateral, manipulated trade measures which impose undue burdens … climate ambition must be built on partnership, not protectionism,” Mohammad Navid Safiullah, an official at Bangladesh’s climate ministry, told a press conference this week. “There’s a lot of pressure on the EU because it added a lot of new [policies] affecting trade in past years. Deforestation, CBAM, all very harsh measures. We feel a conversation needs to be had,” said one Latin American negotiator, while cautioning that dispute resolution should remain a matter for the World Trade Organization, not the U.N. climate body.  The EU says it’s willing to have that conversation — up to a point. “We recognize this challenge exists, that this response to climate change … does produce friction in the trading system. And we need to address these frictions,” Werksman said. “What we aren’t prepared to create is some kind of proxy dispute settlement system.” TRADE TACTICS  European negotiators also complain that while some countries have voiced legitimate concerns, some of those who have brought up CBAM at COP30 are doing so in bad faith.  The Like-Minded Developing Countries, a negotiating bloc that includes India and China, as well as the Arab Group led by Saudi Arabia are using trade as a “tactical token” to gain leverage in the broader negotiations in Belém, said one European diplomat. The European diplomat and the Latin American negotiator also said Saudi Arabia has sought to inject the trade dispute into unrelated negotiations to block progress. Riyadh often plays spoiler at climate talks to prevent any agreements that might affect its lucrative fossil fuel exports.  “We do see some countries using this issue as a bit of a bargaining chip to seek concessions elsewhere in the negotiations. Some of the countries complaining about CBAM actually won’t face a significant economic impact” from the levy, said Ellie Belton, a senior advisor at think tank E3G who sat in on last week’s trade negotiations in Belém. Still, she said, “there is more that the EU can do to demonstrate that it is open to testing new approaches and finding different ways to collaborate with developing countries.” While the EU may be feeling the heat, Belton thinks the trade talks at COP are showing promise. COP30 host Brazil, which in past years has also taken issue with CBAM, has sought to play a more constructive role, setting up a discussion forum on trade and climate. With more countries developing measures similar to the EU’s — the United Kingdom is introducing a CBAM in 2027 — such spaces are sorely needed, Belton said.  “We need to start having real conversations about what that means in terms of practical outcomes when we have different CBAMs operating across different jurisdictions — the trade disruptions this will cause and the climate impact that could have in terms of the cost it places on developing countries that are exporting to those markets,” she said. Some Europeans, at least, agree.  “All countries that introduce a relevant carbon price will realize that sooner or later they will have to protect their industries from those that don’t have such price standards,” Jochen Flasbarth, Germany’s state secretary for the environment, told reporters last week.  “I believe this conflict will ultimately only be resolved when we agree on international standards … a discussion that the Brazilians have started here,” he said.  Zack Colman contributed reporting.
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Energy
Environment
Tariffs
Imports
Mercosur momentum grows with fast-track vote on safeguards likely next week
BRUSSELS — The EU Parliament is set to fast-track a vote on one of the final hurdles in front of the trade agreement with the Latin American Mercosur bloc, three parliament officials told POLITICO. The rushed timeline comes as lawmakers come under massive political pressure to finalize legislative work over the additional instrument in time for European Commission President Ursula von der Leyen to fly to Brazil on Dec. 20 to sign the long-awaited accord. The “cows for cars” deal, which has been in the works for a quarter century, would create a free-trade area spanning nearly 800 million people. In Europe, resistance to the accord has melted under pressure from U.S. President Donald Trump’s tariff offensive — along with the pledge from Brussels to implement safeguards to protect European farmers from cheaper South American competition. Once the Parliament’s trade committee approves proposed safeguards, which could happen by Monday, the plenary will vote on the issue as soon as Tuesday on whether to submit them to an urgent procedure. And if a majority of lawmakers approve the accelerated procedure, the safeguards are expected to be put to a vote on Thursday, the officials explained, on condition of anonymity Under the safeguards, proposed forward in October, the European Commission would commit to closely monitor imports of sensitive farm products such as beef, poultry and sugar. This was perceived as an olive branch to assuage concerns from countries skeptical towards the massive trade deal, such as France and Poland. The safeguards are set to be approved on Wednesday by the Council of the EU. After that, EU institutions would need to rubber-stamp legislative work on the instrument, which was a key condition for France and others to support the overall agreement at a vote in the coming days. In another crucial decision, the Conference of Presidents is expected Wednesday to reject a motion for a resolution requesting a court opinion on the EU-Mercosur trade agreement. A large group of European lawmakers — counting between 140 and 150 MEPs — proposed a motion last week to ask the Court of Justice of the European Union to assess whether the accord with the Mercosur trade bloc is compatible with the European treaties. The Conference of Presidents, chaired by Roberta Metsola of the European People’s Party and composed of all political group leaders, will reject the motion on the grounds that it’s not up to the Parliament to weigh on the texts yet, one of the officials said, as the Council of the EU still needs to vote on the pact. The motion, if it had gone through, would have derailed efforts to get the long-awaited trade deal with Argentina, Brazil, Paraguay and Uruguay over the finish line in time for the deal to be signed this year. The text of the motion, supported by lawmakers from the EPP, Socialists and Democrats, Renew, the Greens and The Left group, seeks a legal opinion on a rebalancing mechanism baked into the deal. This provision, a first in EU trade agreements, foresees that either party can seek redress if it considers the other party has introduced a measure that “nullifies or substantially impairs” the benefits of the deal. This story has been updated.
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EU Parliament throws up last-minute hurdle to Mercosur deal
BRUSSELS — A large group of European lawmakers is joining forces in a bid to derail efforts to get a long-awaited trade deal with Latin American countries over the finish line.  The group — counting more than 100 MEPs — plans to propose a motion on Friday calling  for a resolution to ask the Court of Justice of the EU to assess whether the accord with the Mercosur trade bloc is compatible with the European treaties. Should the resolution be adopted at the European Parliament’s next plenary session, from Nov. 24 to 27, it risks thwarting the European Commission’s bid to sign the deal before Christmas to create one of the largest free-trade areas in the world. Mercosur groups Brazil, Argentina, Paraguay and Uruguay. The text would show that “it is still possible to work constructively across our groups,” said Belgian Green MEP Saskia Bricmont.  “Beyond the sometimes divergent views on the pros and cons of the agreement with Mercosur, we must ensure that it is fully compatible with our European treaties,” she told POLITICO.  If a majority of lawmakers supports the resolution, the Parliament would then have to wait until the court issues its opinion before it can vote to approve the agreement. That would risk delaying the process as judicial proceedings in Luxembourg are typically lengthy.  Should the Court issue an opinion against the legality of the agreement, this would put the EU executive in an impossible spot, given how divisive the issue is across the bloc. While it might not crash the whole deal, any required amendments could easily delay the process by a year. The lawmakers — spanning the EPP, S&D, Renew, the Greens and the Left group — want the Court of Justice to issue an opinion on a rebalancing mechanism baked into the deal. This provision, a first in EU trade agreements, foresees that either party can seek redress in the form of tariffs or quotas if they consider the other party has introduced a measure that “nullifies or substantially impairs” the benefits of the deal. The MEPs also want the court to rule on the legal basis for splitting the deal’s trade and partnership sections. Such splits have been introduced to ensure that the main trade provisions can go through a streamlined ratification process that only requires the approval of the European Parliament — but not national or regional parliaments. In addition, the lawmakers want the court to review whether the EU-Mercosur deal is compatible with the EU’s right to apply the so-called precautionary principle, fearing that it could weaken or override this principle when the EU tries to act on environmental or health risks. The principle foresees preventive action in the face of foreseeable environmental harms. The signatories mostly come from countries that have traditionally opposed the behemoth deal — such as Poland, France, Belgium and Ireland.  The EPP, the biggest group in the European Parliament, is represented by its Polish and French members, such as Krzysztof Hetman, Marta Wcisło and François-Xavier Bellamy, among others. Other MEPs include Renew’s Pascal Canfin and S&D’s Raphaël Glucksmann, as well as the Greens’ Majdouline Sbaï.  The Parliament is also set to decide next week which of the trade and agriculture committees will lead work on the Commission’s proposal to introduce safeguards in case a surge of imports of sensitive agricultural produce hurts European markets.  Camille Gijs and Antonia Zimmermann reported from Brussels, and Judith Chetrit from Paris. Max Griera Andreu and Koen Verhelst contributed to this report. 
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29 things we learned from the EU leaders’ summit
BRUSSELS — Heard the one about the 12-and-half-hour meeting of 27 national leaders that succeeded in agreeing very little apart from coming up with quite a lot of “let’s decide in a couple of months” or “let’s just all agree on language that means absolutely nothing but looks like we’re united” or “let’s at least celebrate that we got through this packed agenda without having to come back on Friday”? No? Well let us enlighten you. And if that makes you question how we’ve managed to squeeze 29 things out of this, well let’s just say one of these is about badly functioning vending machines… 1 . STRAIGHT OUT OF THE BOX WITH A QUICK WIN ON SANCTIONS … The day was off to a flying start when Slovak Prime Minister Robert Fico lifted his veto over the latest raft of Russia sanctions on the eve of the summit — allowing the package to get formally signed off at 8 a.m. before leaders even started talking. Fico rolled over after claiming to achieve what he set out to do: clinch support for Slovakia’s car industry. He found an unusual ally in German Chancellor Friedrich Merz who he met separately to discuss the impact of climate targets on their countries’ automotive sectors. 2. … BUT AGREEMENT ON FROZEN RUSSIAN ASSETS WAS LESS FORTHCOMING There was a moment earlier in the week where the EU looked to be on the cusp of a breakthrough on using Russian frozen assets to fund a €140 billion loan for Ukraine. Belgium, the main holdout, appeared to be warming to the European Commission’s daring idea to crack open the piggy bank. But Belgian Prime Minister Bart De Wever stuck by his guns , saying he feared taking the assets, which are held in a Brussels-based financial depository, could trigger Moscow to take legal action. 3. BELGIUM DIDN’T MOVE ON ITS BIG THREE BIG DEMANDS The Flemish right-winger’s prerequisites were threefold: the “full mutualization of the risk,” guarantees that if the money has to paid back, “every member state will chip in,” and for every other EU country that holds immobilized assets to also seize them. Leaders eventually agreed on that classic EU summit outcome: a fudge. They tasked the European Commission to “present options” at the next European Council — effectively deciding not to decide. “Political will is clear, and the process will move forward,” said one EU official. But it’s uncertain whether a deal can be brokered by the next summit, currently set for December. 4. DE WEVER REJECTS THE ‘BAD BOY’ LABEL After POLITICO ranked the Belgian leader among its list of “bad boys” likely to disrupt Thursday’s summit (rightfully, might we add), he protested the branding. “A bad boy! Me? … If you talk about the immobilized assets, we’re the very, very best,” he said. The day was off to a flying start when Slovak Prime Minister Robert Fico lifted his veto over the latest raft of Russia sanctions on the eve of the summit. | Olivier Hoslet/EPA 5. URSULA VON DER LEYEN ALSO CONCEDED THEY’RE NOT QUITE THERE YET The high-level talks “allowed us to identify points we need to clarify,” the Commission president said tactfully. “Nobody vetoed nothing today,” European Council President António Costa chimed in. “The technical and legal aspects of Europe’s support need to be worked upon.” Translation in case you didn’t understand the double negative: The EU needs to come up with a better plan to reassure Belgium — and fast. 6. UKRAINE: EVER THE OPTIMIST Ukrainian President Volodymyr Zelenskyy ― a guest of the summit ― told reporters Russia must pay the price for its invasion, calling on the EU to follow through with its frozen assets proposal, adding he thought the leaders were “close” to an agreement. “If Russia brought war to our land, they have to pay for this war,” he said. 7. AND ZELENSKYY IS STILL HOLDING OUT FOR TOMAHAWKS “We will see,” was Zelenskyy’s message on the topic of acquiring the long-range missiles from the U.S., which Donald Trump has so far ruled out selling to Kyiv. “Each day brings something … maybe tomorrow we will have Tomahawks,” Zelenskyy said. “I don’t know.” 8. UKRAINE WANTS GERMANY TO SEND MORE WEAPONS TOO Merz held a meeting with Zelenskyy about “the situation in Washington and the American plans that are now on the table,” a German official said, adding Zelenskyy made “specific requests” to the chancellor about helping Ukraine with its “defense capabilities.” After the summit, the German leader said Berlin would review a proposal on how German technologies could help to protect Ukrainian’s energy and water infrastructure. 9. THUMBS UP TO DEFENSE ROADMAP! EU leaders endorsed the Defense Readiness Roadmap 2030 presented last week by the Commission, which aims to prepare member countries for war by 2030. One of its main objectives is to fill EU capability gaps in nine areas: air and missile defense, enablers, military mobility, artillery systems, AI and cyber, missile and ammunition, drones and anti-drones, ground combat, and maritime. The plan also mentions areas like defense readiness and the role of Ukraine, which would be heavily armed and supported to become a “steel porcupine” able to deter Russian aggression. As leaders deliberated, a Russian fighter jet and a refueling aircraft briefly crossed into Lithuanian airspace from the Kaliningrad region, underscoring the need for the EU to protect its skies. 10. KYIV IS PROMISING TO BUY EUROPEAN — MOSTLY Ukraine will prioritize domestic and European industry when spending cash from the proposed reparation loan funded by Russia’s frozen assets, Zelenskyy told leaders at the summit — but wants to be able to go across the pond when necessary. 11. MUCH THE SAME FOR SPAIN Spanish leader Pedro Sánchez said the country had committed to contributing cash to a fund organized by NATO to buy weapons for Ukraine from the U.S. | Nicolas Tucat/Getty Images Spanish leader Pedro Sánchez said the country had committed to contributing cash to a fund organized by NATO to buy weapons for Ukraine from the U.S. “Today, most of the air defense components, such as Patriots or Tomahawks … which Ukraine clearly needs, are only manufactured in the United States,” he said. Madrid has been a thorn in Washington’s side over its lax defense spending. 12. THERE WAS A MERCOSUR SURPRISE Merz stunned trade watchers when he announced the leaders had backed a controversial trade agreement with Latin American countries. “We voted on it today: The Mercosur agreement can be ratified,” the German chancellor told reporters, adding that he was “very happy” about that. “All 27 countries voted unanimously in favor,” Merz added on Mercosur. “It’s done.” The remark sparked confusion amongst delegations, as the European Council doesn’t usually vote on trade agreements — let alone one as controversial as the mammoth agreement with the countries of the Latin American bloc of Mercosur, which has been in negotiations for over 25 years. One EU diplomat clarified that it’s because European Council President António Costa sought confirmation from EU leaders that they would agree to take a stance on the deal by the end of this year — and no formal vote was taken yet. 13. CLIMATE TALKS PASSED WITHOUT A HITCH One of the hotter potatoes ahead of the summit passed surprisingly smoothly. Leaders ultimately refrained from bulldozing the EU’s climate targets, agreeing to a vaguely worded commitment to a green transition, though without committing to a 2040 goal, which proposes cutting emissions by 90 percent compared to 1990 levels. In the words of one diplomat: “Classic balance, everyone equally unhappy.” 14. AT LEAST ONE LEADER SEEMED PLEASED, THOUGH Polish Prime Minister Donald Tusk called the summit a “turning point” in Europe’s approach to green policy, adding he succeeded in inserting a “revision clause” into the EU’s plan to extend its carbon-trading system to heating and transport emissions that will give member countries the option to delay or adjust the rollout. “We’ve defused a threat to Polish families and drivers,” he declared, calling the change a signal that “Europe is finally speaking our language.” 15. BUT THE ISSUE WON’T STAY BURIED FOR LONG Ministers are set to reconvene and cast a vote on the 2040 goal on Nov. 4, described by one diplomat as “groundhog day.” 16. MEANWHILE, THERE WAS NOTHING ON MIGRATION … Polish Prime Minister Donald Tusk called the summit a “turning point” in Europe’s approach to green policy. | Thierry Monasse/Getty Images Aside from promising to make migration a “priority,” the EU’s leaders failed to make any kind of breakthrough on a stalled proposal for burden-sharing. Reminder: The EU missed a deadline last week to agree on a new way of deciding which member countries are under stress from receiving migrants and ways of sharing the responsibility more equally across the bloc. 17. … BUT THE ANTI-MIGRANT BREAKFAST CLUB LIVES ON Italy’s Giorgia Meloni, Denmark’s Mette Frederiksen and the Netherlands’ Dick Schoof have kept up their informal pre-summit “migration breakfasts” since last June, swapping innovative ideas on tougher border and asylum policies. They met again on Thursday with von der Leyen, who updated them on the EU’s latest plans for accelerating migrant returns, and the trio agreed an informal summit will take place next month in Rome. 18. NOR DID THE EU’S SOCIAL MEDIA BAN GET MUCH OF A LOOK IN As expected, the leaders endorsed a “possible” minimum age for kids to use social media, but failed to commit to a bloc-wide ban, with capitals divided on whether to make the age 15 or 16, as well as on the issue of parental consent. 19. THERE WAS A WHOLE LOT OF WAITING FOR NEWS… Journalists were frantically pressing their sources in the Council and national delegations to find out what was happening at the leaders’ table as the meeting dragged into the late hours. It eventually finished at 10.30 p.m. ― 12 and a half hours after it began. 20. … AND THE GREENS SEIZED THEIR MOMENT The EU Parliament’s Greens group co-chair Bas Eickhout wandered the hallways of the Justus Lipsius building ready to brief bored journalists about the wonders of the Green Deal — while leaders debated how to unravel it in the other room. 21. THE COMBUSTION ENGINE BAN FELL FLAT One of the pillars of the EU’s green transition, its 2035 de facto combustion engine ban, was set to play a major role in the competitiveness and climate discussions, with Merz and Fico spoiling for a fight over the proposal — yet it barely registered as a footnote. Slovakia used the climate talks to oppose the ban, and the Czech Republic chimed in to agree, but in the end the summit’s official conclusions welcomed the Commission’s proposed ban without mentioning how it should be watered down. 22. THE EUROPEAN COUNCIL’S VENDING MACHINES AREN’T VERY, ER, COMPETITIVE Officials and journalists alike found that the vending machines in the EU’s Justus Lipsius building, which incidentally is due for a €1 billion renovation, about as efficient as a roundtable of 27 national leaders lasting 12 and a half hours. 23. THE BLOC IS WORRIED ABOUT CHINA… Beijing’s export controls on rare earths came up in the talks on competitiveness, according to two EU officials, with some leaders expressing their concerns. 24. … BUT THEY’RE NOT READY TO GO NUCLEAR — YET One of the officials said the EU’s most powerful trade weapon, the Anti-Coercion Instrument, was mentioned, but didn’t garner much interest around the table. 25. HOUSING GETS 40 MINUTES — NOT BAD FOR A FIRST RUN Leaders spent a chunk of time discussing the continent’s housing crisis. A solid start for the topic, which made it onto the agenda for the first time at Costa’s behest. The EU executive “is ready to help,” von der Leyen said after the summit, announcing a European Affordable Housing Plan is in the pipeline and the first EU Housing Summit in 2026. | Dursun Aydemir/Getty Images During talks, Greek Prime Minister Kyriakos Mitsotakis called on the Commission to create a database tracking which housing policies work — and which don’t — across Europe. Most leaders agreed that, while housing remains a national competence, the EU still has a role to play. 26. AND THE COMMISSION WANTS TO ROLL UP ITS SLEEVES The EU executive “is ready to help,” von der Leyen said after the summit, announcing a European Affordable Housing Plan is in the pipeline and the first EU Housing Summit in 2026. 27. LEADERS ENJOYED A FEAST OR TWO For lunch, langoustine with yuzu, celeriac and apple, fillet of veal with artichokes and crispy polenta, and a selection of fresh fruit. For dinner, cannelloni with herbs, courgette velouté, fillet of brill with chorizo and pepper, and fig meringue cake. Yum. 28. THOUGH A FEW COULDN’T MAKE IT Hungarian Prime Minister Viktor Orbán was the most notable absence, rocking up several hours late due to a national holiday in Budapest. Portugal and Slovenia’s leaders were also absent at one point. 29. AND COSTA KEPT HIS PROMISE … JUST The European Council president pledged to streamline summits under his watch, making them one-day affairs instead of two. And with just a couple hours to spare, he was successful. Okay, breathe. Did we miss anything? (Don’t answer that.) Gerardo Fortuna, Max Griera Andrieu, Jordyn Dahl, Gabriel Gavin, Hanne Cokelaere, Clea Caulcutt, Hans von der Burchard, Kathryn Carlson, Tim Ross, Jacopo Barigazzi, Gregorio Sorgi, Eliza Gkritsi, Carlo Martuscelli, Nicholas Vinocur, Saga Ringmar, Sarah Wheaton, Louise Guillot, Zia Weise, Camille Gijs, Bartosz Brzezinski and Giedre Peseckyte contributed to this report.
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