After over two decades of negotiations, the European Union and the Mercosur economic bloc, comprising Argentina, Brazil, Paraguay, and Uruguay, have finally signed a landmark free trade agreement. The deal, which was announced on 28th June 2019, is set to create one of the world’s largest free trade areas, covering a market of over 700 million people.
The agreement, which has been in the works since 1995, aims to eliminate tariffs on a wide range of goods and services, as well as address regulatory barriers to trade. It is seen as a significant achievement, particularly in the face of growing global protectionism and concerns over the future of international trade.
“This is a historical moment,” said European Commission President Jean-Claude Juncker. “In times of global trade tensions and a rise in protectionism, we are sending a strong signal with our Mercosur partners that we believe in open and fair trade.”
Similarly, Brazilian President Jair Bolsonaro hailed the agreement as a “new chapter” in the relationship between the EU and Mercosur. “This is a great deal for Brazil and for all Mercosur countries,” he said. “It will bring more investment, more trade, and more prosperity to our region.”
The agreement is expected to provide significant economic benefits for both sides. The European Union, which is Mercosur’s largest trading partner, will see increased access to a market of over 260 million consumers, while Mercosur countries will gain better access to the EU’s vast single market.
“This deal will open up a market of over 700 million people for European companies,” said EU Trade Commissioner Cecilia Malmström. “It will save European businesses over €4 billion in tariffs each year and create new opportunities for workers and consumers on both sides.”
However, the agreement has also faced criticism from some environmental and agricultural groups, who are concerned about the potential impact on issues such as deforestation, climate change, and the livelihoods of small-scale farmers. These concerns have been a major sticking point in the negotiations, and the final agreement includes provisions aimed at addressing these issues.
“We have worked hard to ensure that this deal includes strong commitments on sustainable development, the environment, and labour rights,” said Malmström. “We will be closely monitoring the implementation of these commitments to ensure they are upheld.”
Overall, the EU-Mercosur free trade agreement is seen as a significant achievement in the current global climate of rising protectionism and trade tensions. It represents a commitment to open and fair trade, and a recognition of the potential benefits of deeper economic integration between the two regions.