Historic EU-Mercosur Free Trade Agreement Signed

The EU and South American bloc Mercosur have signed a monumental free trade agreement in Paraguay, concluding 25 years of negotiations. This deal aims to lower tariffs and boost trade between regions, pending European Parliament's consent and ratification by Mercosur members. It faces concerns over environmental impact and cheap imports.

In a landmark move, top officials from the EU and South American bloc Mercosur have inked a free trade agreement in Paraguay, concluding 25 years of intense negotiations. The unprecedented deal aims to reduce tariffs and enhance trade between the regions, though it still requires European Parliament approval and ratification by the legislatures of Mercosur nations including Argentina, Brazil, Paraguay, and Uruguay.

European Commission President Ursula von der Leyen and European Council President Antonio Costa were present along with the presidents of Mercosur countries, except for Brazil's President Lula, who addressed the event through his foreign minister. This agreement, heralding the creation of the world's largest free trade zone, has raised concerns from farmers and environmentalists about an influx of cheap imports and potential deforestation.

Despite these worries, European leaders champion the accord as a strategic partnership over isolation, underscoring its role in fortifying economic security amidst global political upheaval. Brazilian President Lula praised the deal as a key to expanded trade and investment. As the agreement covers a market of 700 million people, it will significantly alter trade dynamics, with Europe's exports focussing on machinery and chemicals, while Mercosur's primarily consist of agricultural products and minerals.

(With inputs from agencies.)