Asuncion: The European Union and the Mercosur bloc, which includes Brazil, Argentina, Uruguay, and Paraguay, have finalized "a historic" free trade partnership agreement following 25 years of negotiations. This significant milestone was reached during a signing ceremony held in Asuncion, the capital of Paraguay.
According to Kuwait News Agency, European Commission President Ursula von der Leyen emphasized the EU's preference for fair trade over tariffs and its commitment to a long-term partnership instead of isolation. She pointed out that the agreement is not solely a trade deal but also a political statement that underscores both sides' dedication to openness, cooperation, and mutual benefit.
Von der Leyen elaborated on the economic impact of the agreement, stating that it will eliminate tariffs worth billions of euros, open public procurement markets, and integrate industrial value chains. She projected that EU exports to Mercosur could increase by up to 50 billion euros, while Mercosur's exports may see a rise of approximately 9 billion euros, fostering growth and generating job opportunities for both parties.
Additionally, von der Leyen highlighted the agreement's binding commitments on sustainability, including climate neutrality goals for 2050, labor rights protection, and sustainable development promotion. The agreement is also expected to strengthen geopolitical partnerships and enhance political dialogue on global issues.
The EU chief asserted the agreement's benefits for Europe and its Member States, mentioning that around 60,000 European exporting companies, half of which are small and medium-sized enterprises, will gain from tariff reductions and simplified customs procedures. Safeguards will be in place to protect sensitive agricultural sectors and preserve 350 European geographical indications.
The agreement establishes one of the world's largest free trade areas, creating a shared market of nearly 700 million people. It aims to enhance trade and investment between the EU and Mercosur on a rules-based foundation, providing a stable and predictable environment for businesses.