During the CNN 360° this Wednesday (18), international relations analyst Fernanda Magnotta stated that the trade agreement between Mercosur and the European Union should not come to fruition at this time, after the Italian Prime Minister, Giorgia Meloni, declared that Italy would not will support the pact unless it is adjusted according to Rome’s requests.
According to Magnotta, the Italian leader’s announcement is not surprising, considering the history of negotiations and the political challenges faced by the agreement. “What we are seeing now is to no one’s surprise”, commented the expert.
Political barriers and protectionism
The analyst explained that the agreement, which aims to create a large free trade zone between the two regions, now faces political barriers after 25 years of technical negotiations.
“He is leaving for the political layers. And in the political layers, this is where, in fact, these barriers will occur”, stated Magnotta.
Among the main obstacles, the expert highlighted nationalism, populism and protectionism present in some European countries.
She pointed out that agricultural and industrial sectors, both in Europe and Mercosur, are pushing against the agreement, fearing loss of competitiveness and impacts on employment.
Key countries in opposition to the agreement
Magnotta identified three countries as crucial to preventing the implementation of the agreement: Italy, Poland and France. “These are three countries in which the agricultural sectors are very central to the economy, are very vocal politically and will not leave these members of parliament calm,” he explained.
The analyst highlighted that the process of approving the agreement is complex, requiring ratification in the legislative houses of all countries involved, both in Europe and Mercosur.
Given this scenario, Magnotta was skeptical about the possibility of the agreement being implemented in the short term.
“I am very skeptical about the exit from this agreement”, concluded the expert, indicating that political and economic pressures should continue to be a significant obstacle to the implementation of the trade pact between Mercosur and the European Union.
This content was originally published in Analysis: Mercosur-EU Agreement should not come to fruition at this time on the CNN Brasil website.
Source: CNN Brasil
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