European Union governments are close to finishing a big trade deal. They voted to support it on Friday. This is after more than twenty years of talks. The deal is with Mercosur, a group of South American countries. Together, the EU and Mercosur have about 700 million people. They are now closer to creating a large economic partnership. However, some countries have concerns. They worry about farm imports and their local farmers.
The trade agreement is between the EU and Brazil, Argentina, Paraguay, and Uruguay. Supporters say the deal will bring many economic benefits. It can lower taxes on things like wine and cheese from the EU. This will help European businesses sell more products. The deal should also increase international trade. It will help shipping and logistics companies, especially in places like Cyprus.
To help farmers, the EU will use special rules. These rules will manage sudden increases in imports. This will protect European farmers. The EU will also give billions of euros to its farmers. This shows how important this part of the deal is.
But some countries still disagree. France, Poland, Austria, Ireland, and Hungary are worried. They think their farmers might be hurt. Belgium did not vote. Italy voted yes after waiting. The head of the European Commission plans to sign the deal next week. This will happen if no other countries object by Friday.
This trade deal is also a way for the EU to compete with China. China is becoming more influential in Latin America. By trading more, the EU wants to have more stable markets. It also wants to be seen as a reliable partner.
Still, some European businesses are worried. Farmers who sell cheaper products from South America might face more competition. In Cyprus, farmers are concerned for their jobs. However, the country's shipping industry might benefit. The deal must still be approved by the European Parliament. National parliaments may also need to vote. This could lead to more discussions. The success of the deal depends on balancing trade with protecting local farmers.