Top officials from the European Union and Mercosur have signed a landmark free trade agreement in Paraguay, concluding 25 years of negotiations.
The agreement will remove tariffs on more than 90% of bilateral trade, establishing one of the world’s largest free trade zones. Mercosur includes Argentina, Brazil, Paraguay and Uruguay. Bolivia, which joined the bloc after negotiations ended, is expected to accede later.
Ursula von der Leyen, President of the European Commission, said said that “the geopolitical importance of this agreement cannot be overstated” amid revived skepticism about the benefits of free trade.
“We choose fair trade over tariffs. We choose a productive long-term partnership over isolation,” she declared at the ceremony attended by the leaders of Mercosur members
The signing follows a protracted internal EU battle that cleared a key hurdle last week after member states approved the deal by qualified majority, following late concessions.
France, Poland, Austria, Ireland and Hungary opposed the agreement, while Belgium abstained.
Attention now shifts to ratification by the European Parliament and national legislatures on both sides of the Atlantic, where resistance — particularly from farming groups — is expected to remain strong.
ℹ️ EC AV Portal, DW News, POLITICO
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