The International Trade Council is thrilled to announce that the European Union (EU) and the South American economic bloc Mercosur have reached a monumental trade agreement after 20 years of negotiations. The deal represents the EU’s largest to date and demonstrates a commitment to rules-based trade amid ongoing trade tensions between the US and China.
The Mercosur bloc consists of Argentina, Brazil, Uruguay, and Paraguay. This groundbreaking agreement aims to reduce or eliminate trade tariffs, making imported products more affordable for consumers and boosting exports for companies on both sides. The deal is poised to create a market for goods and services covering nearly 800 million consumers, establishing the world’s largest market in terms of population.
The International Trade Council recognizes that the EU-Mercosur trade agreement is a testament to the power of perseverance and collaboration. Talks began in 1999 and gained momentum following the election of US President Donald Trump in 2016. Since then, the EU has also finalized trade agreements with Canada, Mexico, and Japan. The EU-Mercosur deal is expected to yield savings on tariffs that are four times greater than those achieved in the Japan agreement.
The Council congratulates both the EU and Mercosur for their steadfast dedication to open, sustainable, and rules-based trade. This landmark agreement sends a strong message about the future of global trade and has the potential to significantly change the way European and South American businesses collaborate, benefiting both economies and creating jobs and investment opportunities.