The European Union has reached a landmark free trade agreement with Brazil, Argentina, and three other South American nations in the Mercosur trade alliance. The accord, which caps 25 years of negotiations, is set to create one of the world’s largest free trade zones, covering a market of 780 million people representing nearly a quarter of global gross domestic product.
Proponents of the deal say it will save businesses $4.26 billion in duties each year, reducing red tape and tariffs on products such as Italian wine, Argentine steak, and Brazilian oranges. However, critics from France, the Netherlands, and other countries with big dairy and beef industries argue that the pact will subject local farmers to unfair competition and cause environmental damage.
European Commission President Ursula von der Leyen hailed the deal as a “truly historic milestone” at a time when global protectionism is on the rise. However, French President Emmanuel Macron said the deal remained “unacceptable” and demanded additional safeguards for farmers and commitments to sustainable development and health controls.
The agreement must be endorsed by the European Parliament and requires ratification from three or more EU member states representing at least 35% of the bloc’s population. The pact is expected to boost 60,000 businesses through lower tariffs, streamlined customs procedures, and preferential access to raw materials.
Leaders on both sides of the Atlantic have praised the announcement, welcoming it as a boon for export industries. However, critics warn that ratification could take years, citing past EU trade agreements as an example. The deal is seen as a significant step forward in promoting free trade and economic growth in the region.
Source: https://edition.cnn.com/2024/12/06/americas/eu-south-america-trading-bloc-intl-latam/index.html