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EU Seals Mercosur Trade Agreement
(MENAFN) The European Union finalized a landmark free trade agreement with Mercosur on Saturday, advancing the controversial pact despite fierce opposition from agricultural groups and multiple EU governments alarmed by the prospect of low-cost imports flooding their markets.
European Commission President Ursula von der Leyen characterized the arrangement with the South American trading alliance—comprising Argentina, Brazil, Paraguay, and Uruguay—as a "clear and deliberate choice." She emphasized that the EU "choose fair trade over tariffs," selecting "a productive long-term partnership over isolation."
The agreement arrives half a year after von der Leyen finalized a separate arrangement with US President Donald Trump that slapped a 15% tariff on the majority of European exports heading to America.
Earlier this month, Trump vowed to implement additional duties on eight European NATO member states that have resisted his ambitions to purchase Greenland. A 10% levy is expected to take effect on February 1 and rise to 25% in June, remaining in place until a "complete and total purchase" of the Arctic island is realized.
After a quarter-century of diplomatic wrangling, the Latin American trade pact secured backing from most EU member states, though France and Poland remain opposed, Euroactive reported Saturday. The farming industry has mounted substantial resistance, with agricultural workers throughout Europe organizing large-scale demonstrations against the accord.
Protests will reportedly persist Tuesday in Strasbourg, where approximately 5,000 farmers and 1,000 tractors are anticipated to gather outside the European Parliament. A parliamentary vote that could challenge the deal at the EU's Court of Justice is scheduled for Wednesday.
The European Council indicates the agreement will establish the planet's most expansive free trade zone, encompassing a consumer base exceeding 700 million people. The EU ranks as Mercosur's second-largest commercial partner for goods, representing nearly 17% of the bloc's total trade in 2024. That year, EU exports to Mercosur reached €55.2 billion, while imports from the bloc were €56 billion, yielding a total of over €111 billion—more than 36% growth since 2014.
European Commission President Ursula von der Leyen characterized the arrangement with the South American trading alliance—comprising Argentina, Brazil, Paraguay, and Uruguay—as a "clear and deliberate choice." She emphasized that the EU "choose fair trade over tariffs," selecting "a productive long-term partnership over isolation."
The agreement arrives half a year after von der Leyen finalized a separate arrangement with US President Donald Trump that slapped a 15% tariff on the majority of European exports heading to America.
Earlier this month, Trump vowed to implement additional duties on eight European NATO member states that have resisted his ambitions to purchase Greenland. A 10% levy is expected to take effect on February 1 and rise to 25% in June, remaining in place until a "complete and total purchase" of the Arctic island is realized.
After a quarter-century of diplomatic wrangling, the Latin American trade pact secured backing from most EU member states, though France and Poland remain opposed, Euroactive reported Saturday. The farming industry has mounted substantial resistance, with agricultural workers throughout Europe organizing large-scale demonstrations against the accord.
Protests will reportedly persist Tuesday in Strasbourg, where approximately 5,000 farmers and 1,000 tractors are anticipated to gather outside the European Parliament. A parliamentary vote that could challenge the deal at the EU's Court of Justice is scheduled for Wednesday.
The European Council indicates the agreement will establish the planet's most expansive free trade zone, encompassing a consumer base exceeding 700 million people. The EU ranks as Mercosur's second-largest commercial partner for goods, representing nearly 17% of the bloc's total trade in 2024. That year, EU exports to Mercosur reached €55.2 billion, while imports from the bloc were €56 billion, yielding a total of over €111 billion—more than 36% growth since 2014.
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