The European Union and Mercosur have finalized a landmark free trade agreement after 25 years of negotiations. This deal, announced on December 6, 2024, in Montevideo, Uruguay, creates one of the world's largest free trade areas, encompassing nearly 800 million citizens and about 20% of global GDP.
Key aspects of the agreement:
Opens Mercosur's public procurement markets and high-value service sectors to European companies
Eliminates tariffs on over 90% of bilateral trade
Saves European exporters approximately €4 billion annually in duties
Grants South American products preferential access to European markets, especially agricultural goods
Protects 357 European geographical indicators, boosting specialty agricultural exports
Economic implications:
Creates significant opportunities for both regions, particularly in sectors like automobiles, textiles, machinery, and agriculture
Integrates Mercosur industries into EU value chains, enhancing competitiveness and economic diversification
Improves the…