EU And Mercosur Finalize Historic Trade Agreement

After more than two decades of negotiations, the European Union and Mercosur countries—Argentina, Brazil, Paraguay, and Uruguay—have finalized a landmark trade agreement, the European Commission announced.

The deal establishes a free trade area encompassing 780 million people. I Photo:  Ursula von der Leyen X

The deal establishes a free trade area encompassing 780 million people, Peggy Corlin and Aida Sanchez Alonso reported for Euronews.

European Commission President Ursula von der Leyen called the agreement "a truly historic milestone," emphasizing its dual significance as an economic and political achievement.

"This is not only an economic opportunity but a political necessity," von der Leyen stated at a summit in Uruguay.

Uruguayan President Luis Lacalle Pou, representing the Mercosur bloc, echoed her sentiments, stating that the agreement presents "an opportunity" for prosperity, though achieving its potential will require effort beyond bureaucratic approvals.

The pact, which was finalized after intensive negotiations in Montevideo, still requires ratification by the EU’s 27 member states before it can take effect. If approved, it will create one of the world's largest free trade areas, bolstering economic ties between the two regions.