EU and South American bloc Mercosur sign trade deal after 25 years of negotiations
The agreement paved the way for the European Union's largest-ever trade accord after 25 years of negotiations.
TL;DR
- EU and Mercosur signed a free trade agreement in Paraguay after 25 years of negotiations.
- The agreement aims to lower tariffs and boost trade between the two regions.
- It needs to be ratified by the European Parliament and the legislatures of Mercosur members.
- Concerns exist among European farmers and environmental groups about potential impacts on imports and deforestation.
- The deal creates the world's largest free trade zone, encompassing 700 million people.
- Trade between the blocs reached 111 billion euros in 2024, with EU exports focused on machinery and chemical products, and Mercosur exports on agricultural goods and minerals.