Mercosur, South America's leading trade bloc, and the European Free Trade Association (EFTA) have finalized a trade agreement. EFTA includes Switzerland, Norway, Liechtenstein, and Iceland, while Mercosur consists of Argentina, Brazil, Paraguay, Uruguay, and Bolivia, with associate members Chile, Colombia, Ecuador, Guyana, Peru, and Suriname.
This agreement aims to create a free trade area affecting nearly 300 million people, encompassing a combined GDP exceeding $4.3 trillion (€3.64 trillion). "Both sides will benefit from improved market access for more than 97% of their exports," both organizations stated.
The comprehensive Free Trade Agreement (FTA) spans goods, services, investment, and intellectual property rights, among other sectors. It includes the removal of customs duties to enhance trade.
Signed during a summit hosted by Argentine President Javier Milei, the agreement awaits parliamentary approval across member countries. Discussions began in 2015, with official negotiations starting two years later and fourteen rounds of talks conducted since then.
This agreement follows the European Union's similar deal with Mercosur, which has yet to receive full parliamentary ratification from EU member states. Concerns about competition's impacts on agricultural sectors have met opposition from France and Spain.
Source: DW