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Median IN BRUSSELS, 29th June, 2019 WAM
The European Union and four South American countries clinched a deal Friday that would create a trade bloc of 780 million people, representing a quarter of the world’s economy.
The new trade framework – part of a wider Association Agreement between the two regions – will consolidate a strategic economic partnership and create significant opportunities for sustainable growth on both sides, while respecting the environment and preserving interests of EU consumers and sensitive economic sectors.
The EU is the first major partner to strike a trade pact with Mercosur, a bloc comprising Argentina, Brazil Paraguay and Uruguay.
President of the European Commission Jean-Claude Juncker said in a statement that amidst all international trade tensions, today a strong signal is sent to Mercosur partners that EU stand for rules-based trade. Through this trade pact, Mercosur countries have decided to open up their markets to the EU.
This is obviously great news for companies, workers and the economy on both sides of the Atlantic, saving over €4 billion worth of duties per year.
This makes it the largest trade agreement the EU has ever concluded.
The agreement will save European companies over €4 billion in duties at the border – four times as much as the deal with Japan – whilst giving them a head start against competitors from elsewhere in the world.
