U and Mercosur Sign Major Trade Agreement, Creating Vast Free Trade Zone
PARAGUAY: The European Union and the South American Mercosur bloc on Saturday signed a long-debated trade agreement, concluding nearly 25 years of negotiations, according to an international media report.
The signing ceremony was attended by European Commission President Ursula von der Leyen and European Council President Antonio Costa, alongside leaders from Mercosur member states Argentina, Brazil, Paraguay, and Uruguay.
Addressing the ceremony, von der Leyen described the agreement as a symbol of a renewed partnership between Europe and South America. She said the deal had endured years of political changes and prolonged negotiations, ultimately paving the way for what she termed the world’s largest free trade zone.
“This agreement sends a very strong message to the world,” she said. “We choose fair trade over tariffs, long-term partnership over isolation, and real, tangible benefits for our people and businesses.”
The agreement received approval from EU member states last Friday after years of delays, including opposition from countries such as France, Ireland, Hungary, and Poland, as well as protests by European farmers concerned about competition from South American agricultural imports.
Under the agreement, Mercosur countries will benefit from reduced tariffs on key agricultural exports, including beef, poultry, dairy products, sugar, and ethanol. In return, European industries are expected to gain greater access to South American markets, strengthening trade ties between the two regions.
