Spain says US tariffs serve as ‘catalyst’ to ratify EU-Mercosur deal

By Alyssa McMurtry

OVIEDO, Spain (AA) - Spanish Economy Minister Carlos Cuerpo said Monday that “unjustified and arbitrary” tariffs imposed by the US should serve as a "catalyst" for the swift ratification of the EU-Mercosur trade agreement.

“We need to keep advancing trade agreements with more partners. In the short term, that means ratifying this very important agreement with Mercosur,” he said ahead of a meeting of EU trade ministers in Luxembourg.

Cuerpo added that Spain and the EU should also expand their focus on Asian markets, noting Prime Minister Pedro Sanchez’s upcoming trip to China and Vietnam.

This week, Sanchez is set to meet with Chinese President Xi Jinping and leadership in Vietnam as part of Spain’s push to strengthen international trade ties amid tariff disputes with Washington.

The EU and four Mercosur countries – Argentina, Brazil, Paraguay and Uruguay – struck a political agreement for a free trade deal in December. While the deal has sparked protests from European farmers concerned about a potential surge in South American agricultural imports, it is also expected to boost EU exports, including those affected by new US tariffs.

Cuerpo noted that two of Spain’s hardest-hit sectors — wine and olive oil — could see exports increase by up to 50% under the trade agreement.

He expressed hope that the European Commission would propose ratification ahead of the summer recess, with the aim of finalizing the deal before the end of the year.

- Spain calls for EU-wide emergency response plan

Cuerpo also said Spain would propose an EU-wide emergency response plan to support sectors affected by US tariffs and broader economic uncertainty.

Last week, Spain unveiled a €14.1 billion ($15.5 billion) package to protect domestic industries and adapt its economy to shifting global trade dynamics.

“There should be a similar response at the EU level,” he said, pointing out that the bloc is responsible for managing tariffs and collecting the majority of the revenue they generate.

“We need to send a message of trust and unity to consumers, businesses and investors. They should know that Europe will defend them and their interests,” he added.

Cuerpo said the EU must remain open to dialogue with Washington, but also be prepared to act.

Any retaliatory economic measures, he said, should be “just and proportional.”