EU, Mercosur Sign Historic Free Trade Agreement After 25 Years of Negotiation
The European Union (EU) and the South American trade bloc Mercosur have officially signed a free trade agreement, culminating 25 years of negotiations. The historic deal establishes one of the world's largest free trade zones, encompassing 30% of global GDP and over 700,000 people. The agreement was signed on Saturday in Asunción, Paraguay, despite opposition from some European farmers.
A Quarter Century in the Making
Negotiations for the landmark trade pact began in 1999, as reported by Le Monde. It was a long affair, marked by advances and setbacks, and never ceased to arouse passions and oppositions. The deal is seen as a bulwark against rising global tariffs and isolationism, particularly in light of recent trade measures implemented by the U.S. under President Donald Trump.
The Signing Ceremony
The signing ceremony took place at the Grand Theatre José Asunción Flores in Asunción, surrounded by gardens designed by Roberto Burle Marx and influenced by Brazilian and Argentine architecture. The event was attended by key international figures, including the President of the European Commission, Ursula von der Leyen, who signed the agreement on behalf of the EU.
While the Brazilian president was not present, his work was acknowledged by Santiago Peña. However, Argentine President Javier Milei was noted as the only participant who did not applaud. Milei later praised Trump for the capture of Maduro and requested the release of Nahuel Gallo in his speech.
The Economic Impact and Reactions
The Brazilian government has identified potential for expanding its market in various segments of the industry, from aviation to steel, based on the opportunities opened by the trade agreement. However, the agreement has sparked protests and provoked opposition from some quarters, particularly among European farmers, who fear increased competition.
Two no-confidence motions by the French government, aimed at protesting the EU's trade agreement with Mercosur, were defeated. Despite the opposition, the EU hopes to continue its free trade agreements and has plans to conclude negotiations with India before the end of the month.
Environmental Concerns
Critics of the deal, including Deutsche Welle, raised concerns about the potential environmental fallout, arguing that it has been sidelined in the pursuit of trade. These concerns are particularly relevant given the ongoing pressure from the U.S. and China, and the current state of German farms struggling under retail price pressure and international trade agreements.
Looking Ahead
Following the signing of the agreement, the Mercosur governments confirmed that it would be sent to Congress for ratification in extraordinary sessions. The ultimate fate of the agreement now lies with the European Parliament.
The free trade agreement between the EU and Mercosur represents a significant milestone in global trade relations. It sends a clear signal to the world about the importance of building bridges rather than barriers, amid increasing concerns over global tariffs and isolationism.