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European Commission signs free-trade agreement with South American countries

European Commission President Ursula von der Leyen praised a new trade agreement with a group of South American countries Friday. Photo by Alexandre Brum/G20/UPI
European Commission President Ursula von der Leyen praised a new trade agreement with a group of South American countries Friday. Photo by Alexandre Brum/G20/UPI | License Photo

Dec. 6 (UPI) -- The European Commission announced a new free-trade deal with a group of South American countries Friday, but still needs the blessing of European Union member states.

The commission signed on to a deal that covers Mercosur countries -- Argentina, Brazil, Paraguay and Uruguay. France, one of the EU's strongest members, sought to scuddle the agreement, but has failed to gain support among member states.

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"Today marks a truly historic milestone," European Commission President Ursula von der Leyen said. "[This is] an ambitious and balanced agreement."

France's inability to stop the deal comes at a time of political crisis for President Emmanuel Macron who is facing a collapse of his administration and loss of his Prime Minister Michel Barnier.

Poland, Austria and Ireland have signed on with France in opposition to the deal, which opponents have worried about agricultural protections.

"France's voice remains strong in Europe," French Junior Trade Minister Sophie Primas said. "We're not alone in our opposition to Mercosur as it stands. We can achieve a blocking minority."

France is counting on Italy to join its coalition, which could give it enough voting power to block the agreement. Italy's Prime Minister Giorgia Meloni expressed concern over the deal recently.

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"Signing can only take place subject to adequate safeguards and compensation in case of imbalance for the agricultural section," Meloni said.

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