After two decades of complex discussions, the European Union and the Mercosur bloc of South American nations have finally reached a comprehensive trade agreement. This landmark deal will establish one of the largest free trade areas globally, encompassing a combined population of over 700 million people and a GDP of around $20 trillion.
The agreement, signed on 28 June 2019, aims to eliminate the majority of tariffs on goods traded between the two regions, facilitating the flow of products and services. It covers a wide range of sectors, including agriculture, automobiles, and machinery, and is expected to boost economic growth and create new job opportunities on both sides of the Atlantic.
“This is a historic moment for our two regions,” said European Commission President Jean-Claude Juncker. “The agreement will strengthen our economic ties and create new opportunities for businesses and consumers on both sides.”
The deal has been welcomed by business leaders and industry groups, who believe it will enhance their competitiveness and access to new markets. “This agreement is a game-changer for our companies,” said Carlos Abijaodi, Director of the Brazilian National Confederation of Industry. “It will open up new avenues for trade and investment, and help us to better compete on a global scale.”
However, the agreement has also faced criticism from some sectors, particularly European farmers who are concerned about increased competition from South American agricultural products. Environmental groups have also raised concerns about the potential impact on deforestation and climate change.
“We must ensure that this agreement is implemented in a way that protects our environment and the rights of local communities,” said Greenpeace EU agriculture policy director Marco Contiero.
The agreement now must be ratified by the national parliaments of the EU member states and the Mercosur countries before it can be fully implemented. This process is expected to take several months, and it remains to be seen whether the agreement will face any significant opposition or delays.
Overall, the EU-Mercosur trade deal represents a major step forward in strengthening economic ties between the two regions and could have far-reaching implications for global trade and investment patterns.
