Debate Heats Up Over EU-Mercosur Trade Pact Amid Macron's Opposition

European leaders are grappling with a proposed trade pact between the EU and South America's Mercosur. While Germany and Spain advocate for the agreement citing economic benefits, France opposes, citing concerns for local producers. The agreement, pending since 1995, faces criticism for potentially flooding the EU market with cheap imports.

German Chancellor Friedrich Merz and Spanish Prime Minister Pedro Sanchez are rallying for EU backing on a significant free trade pact with the Mercosur bloc, a sentiment not entirely shared among European leaders.

Championed for its potential tariff cuts, the pact promises to boost exports hindered by existing U.S. tariffs and to diversify mineral sourcing away from China. Despite this, French Prime Minister Emmanuel Macron signals that the agreement isn't ready, reflecting concerns over its impact on European agriculture.

Street protests erupted in Brussels, underscoring the divide, with farmers vehemently opposing potential surges in commodity imports. As France, along with other EU nations, calls for postponement, the fate of the pact hinges on gathering sufficient majority support among member states.

(With inputs from agencies.)