EU Says Mercosur Free Trade Deal Covering 700 Million People Will Start May 1

A landmark free trade deal between the European Union (EU) and four South American countries will begin on May 1 after more than a quarter-century of negotiations and new global economic uncertainty unleashed by tariffs, critical mineral controls, and the war in Iran, Sam McNeil reported for the Associated Press (AP).

Mercosur is a key part of the 27-nation EU’s strategy to reduce economic dependence on China and the United States. (Photo: Dati Bendo, European Commission)

The European Commission said that the start date for the EU-Mercosur free trade deal was triggered by Brussels receiving a "note verbale" from Paraguay confirming it had approved the agreement, which is a key part of the 27-nation EU’s strategy to reduce economic dependence on China and the United States.

Parliaments in Uruguay, Brazil, Paraguay, and Argentina have ratified the deal, which links more than 700 million people and accounts for 25% of global gross domestic product.

Bolivia, the newest Mercosur member, did not participate in negotiations but will be able to join the deal in the coming years.

"The priority now is turning this EU-Mercosur agreement into concrete outcomes, giving EU exporters the platform they need to seize new opportunities for trade, growth, and jobs," said European Trade Commissioner Maroš Šefčovič.