The European Commission and South American trading bloc Mercosur announced a deal on Friday to create a massive free trade zone after almost 25 years of negotiations.
The agreement between the EU and Mercosur “marks the beginning of a new story”, European Commission President Ursula von der Leyen said on X in the Uruguayan capital Montevideo.
The FTA covers over 700 million people, making it one of the largest free trade areas in the world.
It covers Brazil, Argentina, Paraguay and Uruguay. Bolivia, a new member of Mercosur, and Venezuela, which has been suspended since 2016, are not included.
The primary goal is to stimulate trade by lowering tariffs. For example, it would allow South American countries to export larger quantities of beef, chicken or sugar to Europe without paying customs duties.
Uruguayan President Luis Lacalle Pou (L) poses for a photo with European Commission President Ursula von der Leyen during the Mercosur summit. The European Commission and South American trading bloc Mercosur announce the agreement between the EU and Mercosur to create a massive free trade area after almost 25 years of negotiations. Santiago Mazzarovich/dpa
Argentine President Javier Milei (L) and Uruguayan President Luis Lacalle Pou attend the Mercosur summit. The European Commission and South American trading bloc Mercosur announce the agreement between the EU and Mercosur to create a massive free trade area after almost 25 years of negotiations. Santiago Mazzarovich/dpa
