The European Union (EU) and Mercosur finalised a free trade agreement on Friday (Dec. 6), after more than 20 years of negotiations.
Mercosur is the South American economic bloc comprising Argentina, Bolivia, Brazil, Paraguay, and Uruguay.
“This is a win-win agreement, which will bring meaningful benefits to consumers and businesses, on both sides. We are focused on fairness and mutual benefit. We have listened to the concerns of our farmers and we acted on them. This agreement includes robust safeguards to protect your livelihoods. EU-Mercosur is the biggest agreement ever, when it comes to the protection of EU food and drinks products” European Commission President Ursula von der Leyen said during a news conference in Uruguay’s capital, Montevideo.
The agreement which aims to reduce tariffs and trade barriers, making it easier for businesses on both sides to export goods, would create one of the largest free trade zones in the world, covering more than 700 million people and nearly 25 percent of global gross domestic product.
“After more than two decades, we have concluded negotiations on the agreement between Mercosur and the European Union,” Brazilian President Luiz Inácio Lula da Silva wrote on X.
Other South American leaders also hailed the pact which has deeply divided nations in Europe. The main front of rejection in the EU is led by France, which has already announced it will not ratify the text. Poland has joined France in opposing the deal which would require approval from 15 of the 27 EU members representing 65% of the EU population along with a simple majority in the European Parliament.
If ratified, the deal will cut South American tariffs on European cars, clothes, food, fine wines and medicines. In exchange, the EU will open its markets, but has imposed limits on the amount of beef, pork, ethanol, honey and sugar that can be imported.
For more key facts about the agreement click here
