US EditionEuropean Union and Mercosur bloc of South American nations sign landmark free trade agreement
The deal eliminates tariffs on over 90% of bilateral trade, creating a free trade zone for 700 million people and boosting EU exports by an estimated €4 billion annually.
- At a ceremony in Asuncion, representatives of the EU and Mercosur formally signed a free-trade agreement after more than 25 years of negotiations on Jan 17.
- Framed against rising protectionism and US tariffs, the deal defends free trade, multilateralism and international law, Antonio Costa, European Council head, said, contrasting with trade as a geopolitical weapon.
- Implementation hinges on approval by the European Parliament and ratification by each Mercosur nation, while some tariffs phase out over 10-15 years with beef quotas and safeguards.
- The pact would cover about 30 per cent of global GDP and link markets of more than 700 million consumers, expected to come into force by the end of 2026 if ratified.
- Powerful protectionist lobbies, especially European farmers, could still block ratification, with France opposed and Italy accepting the deal earlier this month after quotas, safeguards, and subsidies.
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280 Articles
European Union and Mercosur bloc sign landmark free trade agreement
The EU and the Mercosur bloc of South American countries formally signed a long-sought landmark free trade agreement on Saturday, capping more than 25 years of negotiations to strengthen commercial ties in the face of rising protectionism and global trade tensions.
The event was held in Asuncion, Paraguay
EU and Mercosur bloc of South American nations sign trade deal to end quarter-century of talks, just as Trump hits Europe with new tariffs
“It reflects a clear and deliberate choice: We choose fair trade over tariffs. We choose a productive long-term partnership over isolation.”
BY OUR CORRESPONDENT BRUSSELS It was finally signed in Assumption, the capital of Paraguay, the historic partnership agreement between the European Union and Mercosur, after years...
After decades of negotiations, the deal is sealed.The new free trade area is considered to be a response to US tariffs – but remains politically controversial.
The Mercosur agreement is the largest trade agreement the EU has ever concluded with parties outside the union.
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