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EU and Mercosur sign trade deal after 25 years
Summary
EU and Mercosur leaders signed a free trade agreement in Paraguay on Saturday after 25 years of negotiations; the pact now needs consent from the European Parliament and ratification by Argentina, Brazil, Paraguay and Uruguay.
Content
Top officials from the European Union and the South American bloc Mercosur signed a free trade agreement in Asuncion, Paraguay on Saturday after 25 years of negotiations. European Commission President Ursula von der Leyen and European Council President Antonio Costa attended the ceremony alongside Mercosur presidents, while Brazil's president was not present and sent his foreign minister. The agreement is intended to lower tariffs and boost trade across a combined market of about 700 million people and has been described by EU leaders as the bloc's largest-ever trade accord. The deal follows approval from most EU governments last week but has drawn concern from farmers and environmental groups.
What is known:
- The agreement was signed in Asuncion on Saturday after 25 years of talks.
- EU leaders Ursula von der Leyen and Antonio Costa attended; Brazil's president sent his foreign minister instead of attending in person.
- The pact aims to reduce tariffs and expand trade across a market of roughly 700 million people; trade between the blocs was valued at about 111 billion euros in 2024.
- The deal requires consent from the European Parliament and ratification by the legislatures of Argentina, Brazil, Paraguay and Uruguay before taking effect.
- Farmers and environmental groups have reported concerns about cheaper South American imports and potential links to increased deforestation, and France has signalled opposition after farmers protested.
Summary:
Officials said the agreement would create the largest free trade zone in the world and would affect flows of goods such as EU machinery and Mercosur agricultural exports. It still requires approval by the European Parliament and ratification by Mercosur member legislatures; the timetable for those approvals was not specified.