Europe and South America’s Mercosur bloc sign trade deal amid ongoing challenges to implementation.
Historic EU-Mercosur Partnership
– Today, two similarly-minded regions open a new chapter for more than 700 million citizens. Through this partnership, we can collectively gain economically, diplomatically, and geopolitically. We are sending a clear signal to the rest of the world: the EU and Mercosur choose cooperation over competition and partnership over polarization – said European Commission President Ursula von der Leyen shortly after signing the trade agreement with Argentina, Brazil, Paraguay, and Uruguay.
Next Steps for Implementation
Brussels is counting on the provisional trade agreement (iTA) to enter into force as soon as possible. The agreement requires only approval from the EU Council, which took place at the beginning of January, and the European Parliament.
Broader Agreement Signed
In the capital of Paraguay, a broader EU-Mercosur Association Agreement (EMPA) was initialed, which includes, among other things, political and investment-trade pillars.
