Summary
The European Union and South American Mercosur bloc have signed a free trade agreement after 25 years of discussions. This deal aims to reduce trade barriers and improve economic cooperation between the two regions. The agreement needs approval from EU and Mercosur countries' legislative bodies before it can be implemented.
Key Facts
- The trade deal involves the European Union and the Mercosur bloc, which includes Argentina, Brazil, Paraguay, and Uruguay.
- The agreement intends to lower tariffs on over 90% of trade between the two regions.
- EU leaders must approve the deal, and Mercosur countries need to ratify it as well.
- The deal will benefit EU exports of products like cars, wine, and cheese to South America.
- South American exports to Europe will include beef, poultry, sugar, rice, and soybeans.
- The combined economic output of the EU and Mercosur represents about 30% of the world's GDP.
- Farmers and environmentalists in Europe, especially in Ireland, have protested against potential market disruptions and environmental impacts.
- President Donald Trump announced new tariffs against European countries, coinciding with the agreement's signing.
