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Free AccessEU: Polish PM Announces Opposition To 'Current Form' Of Mercosur Trade Deal
Rtrs carrying comments from Polish PM Donald Tusk stating that his gov't opposes the 'current form' of the prospective EU-Mercosur trade deal. The decades-long talks over the agreement are set to come to a head 5-6 December at a summit where a deal could be signed. France has been a vocal opponent of the deal, arguing that it poses threats to Europe's farmers via an uneven playing field on standards. However, due to the nature of the proposed deal - separated into two separate structures, one political, one relating to the FTA - Paris does not have a veto on the trade side of the agreement.
- The trade section of the agreement needs a qualified majority vote rather than unanimity. To defeat such a vote, a 'blocking minority' needs at least four member states with a combined population accounting for at least 35% of the EU total. France and Poland combined account for 23.4% of the EU population.
- The actions of other large-population EU states will therefore prove crucial. Germany and Spain are avowed backers of the agreement. Crucially, Italy is seen as on the fence. Earlier in November, Agriculture Minister Francesco Lollobrigida said, like Tusk, that the deal in its current form is unacceptable. If Italy opposes the deal then the blocking minority will have its requisite population, just requiring one more country to reach the required representation.
- Whether the deal passes or is blocked, the rancor over the deal has sown further divisions within the EU that could hurt unity in other areas of cooperation.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.