EU agrees to ‘world’s largest’ free-trade zone with Mercosur pact after 25 years
The EU sealed the historic deal with Brazil, Argentina, Uruguay and Paraguay to form a 700 million strong bloc, defying fierce farmer opposition
A majority of European Union countries gave the go-ahead on Friday for the bloc to sign the Mercosur free trade deal with Brazil, Argentina, Uruguay and Paraguay after decades of negotiations.
At a meeting of representatives from the 27 EU countries in Brussels, a sufficient number of participants agreed to the planned signing of the deal, diplomatic sources said.
The new free-trade zone, with more than 700 million inhabitants, will be the largest of its kind in the world, according to the European Commission. The controversial deal has been in the making for more than 25 years.
The final agreement was made possible by last-minute concessions to Europe’s agricultural lobby, which views competition from the four countries – all members of the wider Mercosur South American trading bloc – as a threat to European farmers.
In South America, agricultural products such as beef can be produced more cheaply than in Europe.
