European Union and Mercosur Sign Landmark Free Trade Agreement

The European Union and South American bloc Mercosur signed a long-delayed free trade agreement on Saturday in Asuncion, Paraguay, creating one of the world’s largest free trade zones . 

Key Features of the Agreement

The agreement slashes more than 90% of tariffs between the EU and the Mercosur countries of Argentina, Brazil, Paraguay and Uruguay, though some cuts will be phased in over 10 to 15 years.

Statements from European Leaders

European Commission President Ursula von der Leyen

Ursula von der Leyen called the accord a “geopolitical victory,” stressing cooperation over tariffs. 

“With this win-win partnership, we both stand to gain – economically, diplomatically and geopolitically. Our companies will create exports, growth and jobs,” she said in her speech.

European Council Head Antonio Costa

European Council head Antonio Costa said the deal sent “a message of defense of free trade, based on rules, of multilateralism and international law as the basis for relations between countries and regions.”

He said it stood in contrast to “the use of trade as a geopolitical weapon.”