EU and Mercosur Agree on Historic Trade Deal
It has taken about 40 rounds of talks, but the EU and Mercosur have signed a trade deal. It has taken two decades to come to this deal.
Mercosur is a South American trade block consisting of Argentina, Brazil, Paraguay and Uruguay, Bolivia, Chile, Colombia, Ecuador, Guyana, Peru and Suriname, New Zealand and Mexico. Check the Mercosur Wikipedia page for more information.
The EU becomes the first major partner with which Mercosur has struck a trade pact, offering EU firms a potential head start. The European Union is already Mercosur’s biggest trade and investment partner and its second largest for goods trade.
The two regions launched negotiations exactly 20 years ago and stepped up efforts to reach an accord after Donald Trump’s presidential victory led the Europeans to freeze talks with the United States and seek other global trading allies.
In terms of tariff cuts, the trade deal could be the EU’s most lucrative to date, with about 4 billion euros ($4.55 billion) of duties saved on exports, four times more than its deal with Japan.
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