German Chancellor Olaf Scholz called for "pragmatism and flexibility" and stressed that most EU member states "support the agreement politically."

German Chancellor Olaf Scholz called on Wednesday, October 2, for a swift conclusion of the trade agreement between the European Union (EU) and Mercosur, which is opposed by some European countries.

The German Prime Minister reiterated to the European Commission that EU member states have not transferred responsibility for trade policy to the EU level, which is why the desired free trade agreements would not be achieved there.

Scholz described it as "unacceptable" that the EU is not concluding new free trade agreements "in the current geopolitical situation."

"Negotiations with Mercosur must be concluded quickly," the head of government said in a speech in Berlin to the German Wholesale Trade Federation (BGA).

Scholz stressed that most EU member states, including Spain and Italy, "support the agreement politically." However, some European countries are resisting, mainly those whose agricultural sector fears competition from South America.

"For the final metres of the negotiations we need pragmatism and flexibility from everyone, since the agreement with Mercosur is essential to diversify and strengthen the resilience of our economy," he argued.

The two blocs have been negotiating a free trade agreement for more than two decades, which aims to eliminate most tariffs between the two zones, creating a trading space for more than 700 million consumers.