European Union and Mercosur bloc of South American nations sign landmark free trade agreement
Summary
The European Union and Mercosur bloc of South American nations signed a landmark free trade agreement in Asuncion, aiming to eliminate over 90% of tariffs and strengthen economic ties amid global protectionist pressures.
Key Points
- The European Union and Mercosur formally signed a free trade agreement after over 25 years of negotiations.
- The deal aims to eliminate more than 90% of tariffs on goods between the two blocs, creating one of the world's largest free trade zones.
- The agreement faces potential hurdles in the European Parliament but has broad support in South America.
- Environmental regulations and agricultural quotas were incorporated to address European farmers' concerns and support ratification.
