The European Union and the Mercosur economic bloc signed on Saturday, in Paraguay, the trade agreement negotiated for 25 years, officially marking the creation of one of the world’s largest free trade zones, which will include over 700 million inhabitants, reports IPN.
The agreement was signed by the President of the European Commission, Ursula von der Leyen, and the representatives of the four founding Mercosur states: Brazil, Argentina, Uruguay, and Paraguay. In the coming years, Bolivia, the newest member of the economic bloc, may also join the free trade area.
“It’s about fair trade, not based on customs tariffs,” Ursula von der Leyen stated before signing the agreement.
The President of the European Council, António Costa, emphasized that the agreement represents a decisive step towards openness, trade, and cooperation, in the face of isolation, unilateralism, and the use of trade as a geopolitical instrument.
At the same time, the President of Paraguay, Santiago Peña, whose country holds the rotating presidency of Mercosur, called the agreement historic and stated that dialogue, cooperation, and fraternity are the only way to progress.
According to the treaty, European states will be able to export automotive, chemical, and pharmaceutical products to Mercosur countries without additional taxes. In turn, Mercosur countries will have preferential access to the European market for products such as soy, honey, and beef or poultry.
