Mercosur and the EU Initial a Trade Agreement after 20 Years of Negotiations

EU-Mercosur deal has been agreed and is considered historic

The EU and the South American trade bloc, Mercosur have reached an agreement in principle on a free trade deal after 20 years of negotiations.

The deal, which was announced by the European Commission and the Brazilian government, will create a market of more than 770 million people and account for more than 25% of global GDP.

The agreement will eliminate tariffs on 91% of goods traded between the two blocs and will also include provisions on services, investment, intellectual property, and public procurement.

The deal is a major boost for both the EU and Mercosur. For the EU, it will provide access to a large and growing market for its goods and services.

A complex negotiation process with a provisional end

The negotiations were complex and difficult, and there were a number of issues that had to be resolved, including agriculture, intellectual property, and public procurement.

However, both sides were committed to reaching a deal, and they were able to overcome the obstacles and reach an agreement.

The agreement is a significant achievement for both the EU and Mercosur. It will create a major new trading bloc and will boost economic growth in both regions.

The next steps for the trade deal to take effect

The agreement must now be approved by the European Parliament and the Council of the EU. It must also be ratified by the parliaments of all Mercosur countries.

Once the agreement is ratified, it will enter into force. The agreement is expected to have a significant impact on trade between the EU and Mercosur.

It is expected to increase trade by up to €4 billion per year and create jobs in both regions.