EU and Mercosur Seal Historic Free Trade Pact

The European Union is moving forward with a provisional application of a free trade agreement with the Mercosur bloc, which includes Argentina, Brazil, Paraguay, and Uruguay. This strategic move by the EU aims to establish a first-mover advantage in a significant economic partnership, European Commission President Ursula von der Leyen announced.

Negotiated over 25 years, this agreement is the EU's largest trade pact in terms of tariff reductions, aiming to eliminate approximately 4 billion euros ($4.7 billion) in duties on EU exports. Support from Germany, Spain, and other nations emphasizes the deal's importance in counterbalancing business lost to U.S tariffs and reducing dependency on China for critical minerals.

However, the agreement faces opposition, particularly from France, the EU's main agricultural producer, which fears it will lead to an influx of low-cost imports like beef, sugar, and poultry. Such imports threaten to undercut domestic farmers, prompting protests within agricultural communities.