EU-Mercosur's Landmark Free Trade Triumph: A Counter to Global Protectionism

The EU and Mercosur have signed a significant free trade agreement, overcoming decades of negotiation. This deal marks a geopolitical win for the EU, reinforcing economic ties with South America amidst global protectionism. The agreement faces resistance within the EU Parliament but enjoys strong South American support.

In a monumental move, the European Union and the Mercosur bloc have finalized a free trade agreement, culminating over a quarter of a century of negotiations. This agreement, signed in Asuncion, Paraguay, represents a strategic victory for the EU amid rising global protectionism and trade tensions.

While the agreement, covering key South American economies, is poised to eliminate over 90% of tariffs on goods such as Argentine beef and German cars, it still requires ratification from the EU Parliament. Although backed strongly by South America, hurdles remain in Europe, where opposition fears the impact on local agriculture.

Despite the signing's significance, it has sparked existing tensions. Brazilian President Lula da Silva praised the cooperative spirit, although he abstained from the ceremony, hinting at discord due to lengthy EU demands. The agreement's future now hinges on parliamentary approval in Europe as leaders advocate for cooperation over isolationism.

(With inputs from agencies.)