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The European Council’s decision to postpone its vote on concluding the EU-Mercosur free trade agreement (FTA) is a missed strategic opportunity that threatens the EU’s credibility as a reliable partner. After more than 20 years of negotiations, the EU is once again delaying one of its most ambitious and strategic trade agreements.

The EU-Mercosur FTA’s economic benefits are clear. At a time when strengthening competitiveness, economic growth and partnerships should be paramount, the FTA provides access to a market of 284 million consumers – reducing tariff and non-tariff barriers and supporting integrated supply chains.

Beyond its economic benefits, the EU-Mercosur FTA is also an important geopolitical tool. It would anchor a long-term strategic partnership with a key region and reinforce the EU’s role as a credible advocate of rules-based trade. Amid heightened geopolitical rivalry, postponement weakens the EU’s standing and its ability to conclude ambitious FTAs elsewhere.

The EU cannot afford further delays. The EU-Mercosur FTA is vital for the region’s competitiveness, resilience and global credibility. The European Council must promptly return to this file and conclude this FTA in January.

The American Chamber of Commerce to the European Union (AmCham EU) has confirmed Liam Benham, President, EU, NATO and Government Affairs, Europe, Boeing, for a second mandate as Chair of its Board of Directors. We look forward to continuing our work with Liam as he brings his expertise and leadership to advancing AmCham EU’s strategic priorities.   

On Tuesday 2 December, Thibaut L’Ortye, Senior Director of Public Affairs, AmCham EU presented The Transatlantic Economy 2025 report at AmCham Luxembourg’s Transatlantic Trade and Investment event. Stacey Feinberg, US Ambassador to Luxembourg highlighted the strong ties between Luxembourg and the US, with over 150,000 people employed thanks to the partnership. During his section, Mr L’Ortye presented the results of the report, with a particular focus on the resiliency of the EU-US relationship. Despite differing views on certain issues, the transatlantic partnership remains the most integrated in the world, directly responsible for 16 million jobs and one third of global GDP.