EU and Mercosur Forge Historic Trade Alliance Amid Controversy

The European Union and South American bloc Mercosur are set to sign a landmark free trade agreement this weekend. While the deal aims to boost trade by slashing tariffs, it faces significant opposition within the EU, particularly from farmers and environmental groups concerned about cheap imports and deforestation.

This weekend marks a pivotal moment as top European Union officials head to Paraguay for the signing of a free trade agreement with the South American Mercosur bloc.

Negotiated over 25 years, the prominent deal will see tariffs reduced, estimated to underline goods trade valued at 111 billion euros in 2024.

However, it remains a contentious topic. While supporters argue it's crucial to counteract business lost to U.S. tariffs and reduce dependency on China, critics fear a flood of cheaper imports and adverse environmental impacts. Parliamentary approval within the EU continues to hang in the balance.

(With inputs from agencies.)