The European Commission and the South American trade bloc “Mercosur” announced today that they have reached an agreement to establish a major free trade zone after nearly 25 years of negotiations.
“This EU-Mercosur agreement marks the beginning of a new chapter,” said European Commission President Ursula von der Leyen on X (formerly Twitter), while in Montevideo, Uruguay’s capital.
The free trade agreement will encompass over 700 million people, making it one of the largest free trade zones globally. It includes Brazil, Argentina, Paraguay, and Uruguay, but excludes Bolivia, a newer Mercosur member, and Venezuela, which has been suspended since 2016.
The primary goal of the agreement is to boost trade by reducing tariffs. Additionally, it will enable South American countries to export larger quantities of beef, poultry, and sugar to Europe without incurring customs duties.
CREATED by:
“KORÇA BOOM”
