Historic EU-Mercosur Trade Pact Initiates Economic Shift

After over 25 years of negotiation, a major free trade agreement between the EU and four South American nations will start in May, aiming to reduce economic reliance on China and the US. Despite initial opposition and legal hurdles, this deal links 700 million people and a significant share of global GDP.

After more than a quarter-century of negotiations, the European Union has finalized a historic free trade agreement with four South American nations, set to commence on May 1. This landmark deal is expected to create significant economic opportunities, linking over 700 million people and facilitating trade growth across the Atlantic.

The European Commission announced the official start date after receiving approval from Paraguay, marking a crucial step in the EU's strategic plan to diminish economic dependencies on major powers such as China and the United States. The pact, which includes Uruguay, Brazil, Paraguay, and Argentina, represents 25 percent of the global GDP.

Despite facing fierce opposition from farmers and environmentalists and legal challenges within the EU, the deal will provisionally go into effect. A potential European Court of Justice ruling remains the last obstacle, while top EU officials, including Ursula von der Leyen and Maros Sefcovic, emphasize the agreement's importance for future growth and resilience.

(With inputs from agencies.)