Half approval for the Mercosur-EU agreement with 203 votes: UxP split and the text moves to the Senate
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The Chamber of Deputies ratified the free trade agreement between Mercosur and the European Union this Thursday. The approval was achieved with 203 votes in favor, 42 against and 4 abstentions, in a vote that showed broad and cross-party support.
With that result, the text received preliminary approval and will move to the Senate, where the ruling coalition will seek to turn it into law to complete the parliamentary validation of the treaty.
The ruling coalition obtained support from La Libertad Avanza, PRO, UCR, Provincias Unidas and most of the provincial blocs. This way, it managed to consolidate a resounding majority for one of the strategic projects in terms of international integration.
El acuerdo Mercosur-UE logró media sanción y pasará al Senado
Unlike bills, the treaty could not be modified, it had to be approved or rejected in its entirety. This simplified the voting scheme and prevented article-by-article negotiations.
When the Executive Branch included the issue in the agenda for the extraordinary sessions, it made the political objective clear. The goal isfor Argentina to be the first Mercosur country to ratify it and thus gain an advantage over its regional partners.
The debate in the Chamber
During the debate, Deputy Damián Arabia maintained that the agreement represents the effort of a large majority of Argentines. He also stressed: "When a country decides to integrate into the world, it decides to grow. When it decides to grow, it expands the possible horizons for its citizens; development is not compatible with isolation".
Along the same lines, Deputy Juliana Santillán stated that the treaty implies "predictability, clear rules and alignment with international standards". She also added: "In a world where capital seeks a safe destination, we are in the right place".
Con apoyó transversal en Diputados, se ratificó el tratado de libre comercion Mercosur-UE
The most talked-about event of the day was the internal division within Unión por la Patria. A significant group of Peronist deputies voted in favor, while others rejected it. Among those who promoted support for the agreement, figures such as Victoria Tolosa Paz, Germán Martínez, Cecilia Moreau and Agustín Rossi were mentioned.
These latter deputies circulated a prior document in which they argued that gaining access to a market of 27 countries, with high purchasing power and demanding standards, constitutes an opportunity to diversify exports and add value.
What the agreement between Mercosur and the European Union implies
The association agreement between Mercosur and the European Union covers trade, political and cooperation dimensions. It gives rise to one of the most relevant integrated economic areas in the world: nearly 700 million people and around 25% of global GDP.
On the trade front, it provides for the progressive elimination of more than 90% of bilateral tariffs, the reduction of non-tariff barriers and the harmonization of rules in areas such as investment, intellectual property, sanitary standards and technical regulations.
According to official estimates, it will allow Mercosur to gain preferential access to one of the markets with the highest purchasing power in the world. This integration will have direct benefits for the agribusiness sector, the export of minerals, processed foods and agricultural manufactures.
El Gobierno apuesta a ser el primer país en ratificar el acuerdo para poner en marcha los aspectos económicos
For the European Union, the agreement strengthens its presence in South America and diversifies strategic suppliers in a context of growing global competition. European companies could save up to 4 billion euros per year in customs duties.
In Argentina's case, the Foreign Ministry projects that exports to the European Union could grow by 76% in the first five years and by up to 122% in ten years. The most dynamic sectors are energy and mining, especially in projects linked to lithium, copper and hydrocarbons.
The treaty is divided into a political part and an economic part. The political dimension has been temporarily halted, after the European Parliament decided to refer the text to the Court of Justice of the European Union to analyze its legal compatibility, which could delay full approval. However, powers have already been delegated to the European Council to move forward on economic aspects with the countries that ratify it.
In that context, the Government is betting on speeding up the timeline and positioning Argentina as the country that sets the course within the regional bloc.
