MONTEVIDEO, Uruguay — Leaders from the European Union and the Mercosur trade alliance have reached an agreement on a much-anticipated free trade agreement, as announced by European Commission President Ursula von der Leyen in Montevideo on Friday.
This EU-Mercosur agreement is set to establish one of the largest free trade zones globally, impacting a population of over 700 million people and accounting for nearly 25% of the world’s GDP.
Similar to the trade agreement between the U.S., Mexico, and Canada, the primary aim of this deal is to lower tariffs and eliminate trade obstacles, thereby simplifying the export process for companies in both regions.
However, the negotiation process is not yet complete for European leaders. France spearheads a coalition of member states that continue to voice concerns over the agreement, and it is imperative that all 27 EU member nations approve the deal before it can be implemented.
