Historic EU-Mercosur Trade Pact Ushers in New Era

The EU and Mercosur are set to sign a historic trade agreement, uniting economies like Brazil and Argentina with Europe in one of the world's largest free trade zones. Despite Lula's absence, the pact marks a major milestone after 25 years of negotiations, impacting global trade balances.

The anticipated signing of a free trade agreement between the European Union and Mercosur, involving key South American economies like Brazil and Argentina, marks a historic occasion set to reshape international commerce. However, Brazilian President Luiz Inácio Lula da Silva will be notably absent from the ceremony in Paraguay.

This deal, culminating after over 25 years of negotiation, establishes one of the world's largest free trade areas, involving a GDP of over USD 22 trillion. EU and Mercosur leaders stress the importance of partnership amid shifting global trade dynamics, especially as the US and China vie for influence in the region.

Lula's absence, according to experts, signifies a stance for equal partnership terms with the EU. Despite the absence, the agreement is expected to bolster South American exports to Europe, with products like instant coffee and poultry expected to see substantial gains.

(With inputs from agencies.)