Ursula von der Leyen, Commission President of the European Union, traveled to Montevideo, Uruguay last week to finalize and sign the Mercosur-E.U. Agreement.  Implementation is, however, subject to approval by all member nations.  There is considerable dissension among the major western members of the E.U. as to the benefits of the trade pact.

Farmers in many nations are concerned over competition from lower-priced commodities including beef and poultry. It is claimed that exporters comprising the Mercosur Nations of Brazil, Argentina, Paraguay and Uruguay benefit from favorable production costs based on allegedly lower standards of environmental and welfare compliance and food safety. Effectively the cost differential is due mainly to lower labor and feed costs for livestock and poultry production although offset by ocean freight.

Farmers in France and the Netherlands are especially concerned over their viability in facing foreign competition with intensified domestic environmental restraints.  Germany, in contrast, has suffered from loss of markets in Russia and China and would benefit from the Mercosur Agreement as a major exporter of manufactured goods.

The Mercosur-E.U. Agreement is subject to approval by the European Parliament, a prospect that places ratification in question.