Summary
The European Union (EU) has signed a free trade agreement with Brazil, Argentina, Paraguay, and Uruguay, after 25 years of talks. This deal still needs approval from the European Parliament before it becomes official. The agreement is set to boost economic ties between the EU and South America, although some European farmers are worried it might harm their business.
Key Facts
- The free trade deal involves the EU and the Mercosur bloc, which includes Brazil, Argentina, Paraguay, and Uruguay.
- Discussions for the agreement started 25 years ago and it’s the largest free trade deal for the EU so far.
- The European Parliament must approve the deal for it to take effect.
- Some European farmers have protested, fearing that cheaper imports might affect their livelihood.
- The EU has added safeguards in the agreement to address farmers' concerns.
- The deal aims to save European companies €4 billion annually in export duties.
- It also includes commitments to fight climate change and prevent deforestation.
- The economic impact of the deal is projected to increase EU economic output by 0.05%, with full benefits expected by 2040.
