European Union and Mercosur bloc of South American nations sign landmark free trade agreement
AP News • • general
Key Points:
- The European Union and Mercosur, a South American trade bloc, signed a landmark free trade agreement after more than 25 years of negotiations, aiming to strengthen commercial ties amid global protectionism and trade tensions.
- The deal, signed in Asunción, Paraguay, creates one of the world's largest free trade zones, covering over 700 million consumers and eliminating more than 90% of tariffs on goods and services, though some tariffs will be phased out over 10-15 years with quotas on key agricultural products like beef.
- The agreement represents a geopolitical win for the EU, expanding its influence in a resource-rich region contested by the US and China, and signals South America's intent to maintain diverse trade relations despite US dominance claims.
- The deal faces
