Trending Theme: EU and Mercosur Countries Reach Agreement on Trade

After twenty years of negotiation, the European Union and the Southern Common Market (Mercosur) consisting of Argentina, Brazil, Paraguay, and Uruguay have come to a trade agreement. Both sides have described the event as a “landmark” deal in consolidating a strategic, political, and economic partnership between the two regions and some 800 million people equaling a quarter of global gross domestic product. The deal eliminates tariffs on 93% of exports to the EU with “preferential treatment” for the remaining 7% and increases Mercosur access to the EU market for agricultural goods – notably beef, poultry, sugar, and ethanol. The EU gains a vastly improved export environment, which eliminates Mercosur’s traditionally high tariffs and trade barriers over other parts of the world. Ultimately, the agreement will remove duties on 91% of goods such as car parts, machinery, wine, and cheese that EU companies export to Mercosur countries. The deal represents a win-win for both the EU and Mercosur, creating opportunities for growth and jobs for both sides.

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