Hey folks! 🌟 This past Saturday, the European Union and Mercosur (the South American trade bloc including Brazil, Argentina, Paraguay and Uruguay) shook hands on a landmark free trade deal after a whopping 25 years of talks.
Once European lawmakers and the national assemblies in the four Mercosur members give the green light, tariffs on over 90% of goods traded between these two giants will be scrapped. That means smoother, cheaper cross-continental trade—expected to kick in by the end of 2026. 📆
EU Commission President Ursula von der Leyen hailed it as a win for "fair trade over tariffs," and Paraguay’s President Santiago Peña called it "a clear signal in favor of international trade."
European Council President Antonio Costa added that the pact defends rules-based free trade and multilateralism, standing in contrast to the tariff battles of the Trump era. Together, the EU and Mercosur account for 30% of global GDP and serve 700 million consumers—imagine the scale! 🌍
For us in South and Southeast Asia, it’s a reminder of how global partnerships can open doors—think broader access to products, more competitive pricing, and fresh market opportunities beyond the usual routes. Let’s keep an eye on this one! 👀✨
Reference(s):
EU and Mercosur sign trade agreement after 25 years of negotiation
cgtn.com
