EU and Mercosur countries sign landmark free trade deal

Summary

The European Union and South American bloc Mercosur signed a long-delayed free trade agreement on Saturday in Asuncion, Paraguay, creating one of the world's largest free trade zones. The agreement slashes more than 90% of tariffs between the EU and the Mercosur countries of Argentina, Brazil, Paraguay and Uruguay, though some cuts will be phased in over 10 to 15 years.EU and Mercosur sign landmark trade dealTo view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video European Commission President Ursula von der Leyen called the accord a “geopolitical victory,” stressing cooperation over tariffs. "With this win-win partnership, we both stand to gain – economically, diplomatically and geopolitically. Our companies will create exports, growth and jobs," she said in her speech. EU Trade Commissioner Maros Sefcovic told DW after signing the deal that European and Mercosur countries were "discussing all the concrete projects what we can do together." "We are sending a very clear message to the world that Mercosur and European Union countries are for low tariffs, for smooth trade, for creating better quality and better prices for our consumers," Sefcovic told DW after signing the deal. "And we just simply want to work together, the friends of partners on mutual advantages project." What are details of the EU-Mercosur deal and roadblocks? The trade deal would slash tariffs with the goal of expanding goods trade that is even split. In 2024, this trade was worth €111 billion ($128.8 billion). The deal includes the EU's 27 member countries, although Austria, France, Hungary, Ireland and Poland voted against it The accord is expected to benefit EU exports such as cars, wine and cheese It will also provide access for South American agricultural products including beef and soybeans It faces opposition from some European farmers Opponents fear a surge of cheap imports of South American commodities and further deforestation The agr...