Mercosur and EU to sign long-awaited trade deal

Mercosur and the European Union will sign a trade agreement on Saturday that eliminates tariffs on more than 90% of bilateral trade and aims to create one of the world’s largest free-trade areas; signing will take place in Asuncion with senior EU officials and some Mercosur leaders present.

Mercosur and the European Union will sign a long-delayed trade agreement on Saturday in Asuncion. Negotiations on the pact took about 25 years. The treaty removes tariffs on more than 90 percent of bilateral trade and covers a wide range of goods. The deal has drawn support from leaders and concern from farmers and some industry observers. Key facts: - The EU and Mercosur together account for about 30 percent of global GDP and more than 700 million consumers. - The treaty eliminates tariffs on over 90 percent of trade between the two blocs. - It is expected to expand European exports such as cars, wine and cheese, while easing access for South American beef, poultry, sugar, rice, honey and soybeans into Europe. - European farmers have voiced opposition, citing worries about production standards and competition from cheaper imports. - In Argentina, researcher Luciana Ghiotto was cited as estimating possible job losses in the domestic automotive sector linked to the deal. - European Commission President Ursula von der Leyen, European Council head Antonio Costa and EU Trade Commissioner Maros Sefcovic will attend the signing; Paraguay’s president and Uruguay’s president are also expected to be present, while Brazil’s President Luiz Inacio Lula da Silva will not attend and Argentina’s leader Javier Milei is unconfirmed. Summary: The agreement aims to create one of the world’s largest free-trade areas by removing most tariffs between the EU and Mercosur, affecting both industrial and agricultural sectors. Leaders will sign the treaty in Asuncion on Saturday with senior EU officials and some Mercosur leaders attending. Longer-term implementation steps and timelines were not specified, and further details on ratification are undetermined at this time.