German industry urges Berlin to 'decisively' back EU–Mercosur deal

Germany's government should firmly support the conclusion of the EU–Mercosur trade agreement, the German Chamber of Commerce and Industry (DIHK) said on Monday.

"The EU must not miss the opportunity to forge closer ties with its important trading and raw materials partners in South America and to dismantle existing trade barriers," DIHK head of foreign trade Volker Treier said in a statement.

The deal is intended to boost trade between the EU and the four Mercosur countries — Brazil, Argentina, Uruguay and Paraguay. According to the European Commission, the free trade zone, with more than 700 million people, would be the largest of its kind in the world.

A decision to approve the signing of the agreement had been expected ahead of an EU summit in Brussels on Thursday and Friday. However, it remains unclear whether the necessary majority can be secured. The plan had been to sign the deal this coming weekend on the sidelines of a Mercosur summit in Brazil.

DIHK's appeal came after the French government on Sunday once again called for revisions to the deal and a delay to its approval.

Treier said the German government should must respond by "clearly and decisively" pushing for ratification. The agreement would offer significant economic potential through tariff reductions and market openings, he said.

"After more than 25 years of negotiations, companies in Germany expect the European Council and the European Parliament to finally conclude the agreement with the Mercosur partner countries," Treier added.