Summary
The European Union and the Mercosur bloc of South American countries signed a major free trade agreement in Paraguay, concluding over 25 years of negotiations. This deal removes more than 90% of tariffs and creates a large free trade zone, impacting around 700 million consumers. The agreement is seen as a response to global trade tensions and aims to strengthen commercial ties between Europe and South America.
Key Facts
- The EU and Mercosur signed a free trade agreement after over 25 years of talks.
- Mercosur includes Argentina, Brazil, Paraguay, and Uruguay; Bolivia may join later.
- Venezuela is not part of the agreement as it is suspended from Mercosur.
- The deal removes more than 90% of tariffs between the regions.
- The trade zone will benefit over 700 million consumers.
- The EU agriculture sector had concerns about cheap imports from South America.
- European Commission President Ursula von der Leyen highlighted the agreement as a move towards fair trade amidst global trade tensions.
- Brazilian President Luiz Inácio Lula da Silva did not attend the signing due to disagreements over agricultural concessions.
