Volkswacht Bodensee - Uruguay becomes first country to ratify EU-South America trade deal

Uruguay's lower house of parliament approved the deal, which has been fiercely opposed by farmers in some EU countries, following its approval by the Senate.

Argentina is expected to complete adoption of the accord later Thursday, a day after Brazil's lower house of parliament backed it by a large majority.

The deal signed with the four members of the Mercosur bloc in January, after a quarter century of negotiations, creates one of the world's largest free trade areas.

It would help the European Union export more vehicles, machinery, wines and spirits to Latin America.

In return, South American producers of meat, sugar, rice, honey and soybeans gain easier access to one of the world's largest economies.

It still requires approval from lawmakers in the European Parliament, which has referred it to the EU's top court.

The European Union can decide to implement the deal provisionally while waiting for the court's ruling, but has not yet made a decision on doing so.

South American countries that pushed hard for the deal are ploughing ahead with ratifying it regardless of the European legal challenge.

Uruguayan Foreign Minister Mario Lubetkin hailed its ratification as a "historic" step and "a signal" to Europe, which the South Americans have accused of foot-dragging on the deal.

- Fears over cheap imports -

Uruguayan MPs voted by 91 votes in favor to two against the deal, which was also overwhelmingly backed by the Senate.

The deal is also expected to clear the Argentine Senate on Thursday, completing its legislative journey in that country.

Argentine Senator Francisco Paoltroni hailed it as representing "the path to the definitive development of our republic."

Some EU nations, such as Germany and Spain, are excited about a pact that could help boost exports at a time of global trade tensions.

EU chief Ursula von der Leyen pushed hard for the deal, as did Brazilian President Luiz Inacio Lula da Silva.

France, however, unsuccessfully tried to block the deal over concerns for its farmers, who fear being undercut by a flood of cheaper goods from Brazil and its neighbors.

U.Maertens--VB