Mercosur and EU Finalize Historic Trade Agreement After 25 Years of Talks

In a landmark event, Mercosur and the European Union signed a free trade agreement in Asunción, marking the culmination of over 25 years of negotiations. This agreement, which involves 31 countries and nearly 720 million people, aims to reduce or eliminate tariffs on about 90% of imports and exports between the two blocs. Key figures present included EU Trade Commissioner Maroš Šefčovič and leaders from Mercosur member countries, although Brazil's President Luiz Inácio Lula da Silva was notably absent. The deal is seen as a response to rising global protectionism and is expected to benefit both the agricultural sector in Mercosur and European industries. However, it still requires ratification from both sides before implementation can begin, anticipated by Brazil in the second half of 2024.

Key Details: • Agreement signed on Saturday in Asunción, Paraguay. • Involves 31 countries with a combined population of 720 million. • Tariffs on 90% of imports and exports to be reduced or eliminated. • Implementation expected to begin in the second half of 2024 for Brazil. • Still needs ratification from both Mercosur and EU member states.