EU Faces Backlash Over Mercosur Free Trade Deal Delay

Key German business associations express frustration at the EU's delay in finalizing a free trade deal with Mercosur. The delay undermines Europe's credibility and impacts industries reliant on exports. EU leaders are urged to expedite the agreement to strengthen Europe's strategic position amid global trade challenges.

The European Union's decision to postpone signing a crucial free trade agreement with the South American bloc Mercosur until January has sparked sharp criticism from major German business associations.

Tanja Goenner, managing director at the BDI industry association, says the delay diminishes Europe's credibility as a geopolitical leader. EU states are urged to prioritize collective interests over individual reservations to boost regional competitiveness.

Industries heavily dependent on exports, such as Germany's auto sector, warn of the potential negative impact on jobs and economic growth if the deal fails. Despite concerns about imported commodities affecting European farmers, the EU is encouraged to move forward during uncertain global trade times.

(With inputs from agencies.)