Mercosur and the European Union sign trade agreement negotiated 25 years ago
Free trade negotiations add up to 750 million people
By Agência Brasil
Lucas Pordeus León - Agência Brasil reporter
Published on 06/12/2024
The heads of state of Mercosur and the representative of the European Union (EU), Ursula von der Leyen, announced on Friday (6) that a free trade agreement has been signed to reduce export tariffs between the countries that make up these markets. The negotiations had been dragging on for 25 years.
The agreement was announced at a press conference in Montevideo, Uruguay, where the 65th Summit of Mercosur Heads of State is taking place.
In the presence of President Luiz Inácio Lula da Silva, Argentinian President Javier Milei, Uruguayan President Luis Alberto Lacalle Pou, and Paraguayan President Santiago Peña, it was announced that negotiations had been concluded on free trade rules between the countries of the blocs. In all, the agreement involves nations with a combined population of more than 750 million people.
The president of the European Union stressed that the measure marks the beginning of a new story. “I'm now looking forward to discussing this with the EU countries. This agreement will work for people and companies. More jobs. More choices. Shared prosperity.
Signature
Although the negotiations have been concluded, the agreement still needs to be signed. The negotiated texts will undergo legal review and will be translated into the official languages of the countries. The agreement then needs to be approved internally in each of the nations. There is no deadline for this process to be completed.
“After signing by the parties, the Agreement will be submitted to the procedures of each party for internal approval - in the case of Brazil, the Agreement will be submitted for approval by the Legislative Branch. Once approved internally, the Agreement can be ratified by each of the parties, a step that allows the Agreement to enter into force,” said the Brazilian government.
Opportunity
The president of Uruguay, host of the meeting that announced the end of the negotiations, recalled that the agreement was possible despite the political differences between the Mercosur countries. For the Uruguayan president, it is an opportunity.
“An agreement of this kind is not a solution. There are no more magic solutions. There are no bureaucrats or governments to establish ownership. It's an opportunity. The steps must be small but safe.”
The EU president recalled the historical ties between the two continents and that the agreement is a “political necessity” in an increasingly fragmented and convulsed world. “In an increasingly conflictive world, we have shown that democracies can support each other. This agreement is not just an economic opportunity; it is a political necessity. We are partners with common mentalities who have common roots,” said Ursula.
Ursula von der Leyen also said that she is aware of the opposition from European farmers, especially the French, who are worried that an invasion of Mercosur products will take their market. “This agreement includes robust safeguards to protect them,” she said.
According to her, the agreement should benefit around 60,000 companies that export to Mercosur countries, saving 4 billion euros. “They will benefit from reduced tariffs, simpler customs procedures, and also preferential access to some essential raw materials. This will bring great business opportunities.”
Environment
For the European representative, the agreement signed between the blocs will allow investments to respect the environment.
“The agreement between Mercosur and the European Union is the first step towards the Paris Agreement and towards combating deforestation. President Lula and his efforts to protect the Amazon are welcome and necessary, but preserving the Amazon is a shared responsibility of all humanity,” he added.
Translation Ana Cunha-Busch, The Green Amazon News
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