What is the significance of the EU-Mercosur trade agreement?

The EU-Mercosur agreement creates one of the world's largest free trade areas, aiming to boost economic ties and cooperation between Europe and South America.

When is the EU-Mercosur trade deal expected to take effect?

The treaty is anticipated to come into force by the end of 2026, following ratification by the respective legislative bodies.

Which products will be favored by the EU-Mercosur trade pact?

European exports like cars and wine will be favored, while South American agricultural goods such as beef and sugar will find easier access to European markets.

Home / Business and Economy / Historic EU-Mercosur Pact Signed: Reshaping Global Trade

Historic EU-Mercosur Pact Signed: Reshaping Global Trade

18 Jan

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Summary

EU and Mercosur finalized their largest trade accord after 25 years.
The agreement aims to boost trade and create jobs across continents.
It accounts for 30% of global GDP and over 700 million consumers.

Historic EU-Mercosur Pact Signed: Reshaping Global Trade

European and South American officials have signed a landmark free trade agreement, establishing one of the world's largest free trade areas. This historic accord, finalized after 25 years of negotiations, aims to eliminate tariffs on more than 90 percent of bilateral trade between the 27-nation EU and the Mercosur bloc. It represents a significant stride towards global economic cooperation.

The treaty, which must still be ratified by member legislatures, is projected to come into force by the end of 2026. It is expected to bolster exports of European cars, wine, and cheese, while facilitating the import of South American agricultural products like beef and sugar into Europe. Leaders hailed the pact as a commitment to fair trade and long-term partnerships.

This agreement sends a powerful geopolitical message, promoting multilateralism at a time of rising protectionism and global tensions. Together, the EU and Mercosur represent a substantial portion of the world's economic output and consumer base, underscoring the global significance of this newly formed trade zone.