After 25 years of negotiations, the European Union reached a free trade agreement with Mercosur, a trading bloc comprised of Brazil, Argentina, Paraguay, and Uruguay. The agreement, finalized in Brussels, awaits approval from the European Parliament in the coming months.
Brazilian President Luiz Inacio Lula da Silva called the agreement "a historic day for multilateralism." The EU has characterized the accord as its largest free trade agreement to date, anticipating mutual benefits for both regions.
The agreement arrives amidst a global backdrop of increasing protectionism and unilateral trade measures, including tariffs imposed by the United States. Proponents argue that the EU-Mercosur deal signals a commitment to international trade as a catalyst for economic growth.
However, the agreement faces opposition, particularly from European farmers who fear that cheaper imports from South America will undercut their businesses. Concerns have been raised regarding the potential impact on European producers of beef, poultry, and sugar. Farmers in several European countries have voiced their concerns, with protests taking place in locations such as Paris.
The EU-Mercosur agreement aims to reduce trade barriers and foster economic cooperation between the two regions. The details of the agreement are expected to be released publicly following a legal review. The European Parliament will then vote on whether to ratify the agreement.
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