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EU & Mercosur Seal Landmark Trade Deal After 25 Years
18 Jan
Summary
- EU and Mercosur nations signed a historic free trade agreement.
- The deal creates one of the world's largest free trade zones.
- It aims to boost commercial ties against rising protectionism.
The European Union and Mercosur bloc formalized a long-awaited free trade agreement on Saturday, concluding over a quarter-century of complex negotiations. This landmark accord, signed in Asunción, Paraguay, is positioned as a significant geopolitical victory for the EU in an era marked by rising trade tensions and protectionism, particularly from the United States and increasing Chinese exports.
The agreement was celebrated by leaders as a symbol of global cooperation and a choice for fair trade over isolationist policies. It aims to gradually eliminate over 90% of tariffs, establishing one of the planet's most expansive free trade zones and benefiting over 700 million consumers by making goods more affordable.
Despite the signing, ratification by the European Parliament remains a hurdle. Concerns persist among some European nations, like France, regarding the potential impact on their agricultural sectors, indicating that political will remains crucial for the full implementation of this extensive trade pact.
