The European Council has agreed on a new trade deal with Mercosur. This deal will create the world's largest free trade zone. It will cover over 700 million people. Tariffs will be removed on more than 90% of goods traded between them.
However, this news has made some producers in Cyprus worried. They fear that cheaper products from South America could hurt their businesses. Cypriot farmers and artisans are concerned. Halloumi cheese is not protected in the deal. This is a major problem for them.
EU ministers approved this important decision. It is expected to change trade between Europe and South America. The European Commission President was to sign the agreement soon. While the deal aims for more economic connection, some people in Cyprus are not happy.
In Paphos, many farmers feel anxious. Nikolas Theodosiou, a village official, said local producers need protection. He fears they will not be able to compete with cheaper imports. This is especially true for products like bananas.
The decision to not include halloumi cheese is a big worry. The Cypriot Ministry of Agriculture said the deal protects other special products. But the halloumi issue has caused much discussion. Officials say halloumi was not on the list when it was made. However, lists can be changed later.
The deal does protect other Cypriot items. These include special wines and ouzo. This gives some comfort. It shows a wish to protect the island's food traditions.
Some EU countries did not agree with the deal. Austria, France, Hungary, and Poland were against it. Belgium did not vote. Italy had concerns but voted yes in the end. This shows how hard it is to make such trade agreements.
Cyprus must now deal with more competition. The deal has rules to protect European producers. These rules can stop some imports if they cause too much trouble. However, it is not clear if these rules will be enough. People will watch closely how Cyprus protects its local industries.