EU and Mercosur countries reach political agreement on planned free trade agreement

According to a statement from the EU Commission, the relevant institutional leaders of the European Union and the representatives of the countries of the South American Common Market (Mercosur) – Argentina, Brazil, Paraguay, Uruguay and Venezuela, whose membership has been suspended since 2016 – reached a political agreement on the final text of the free trade agreement after two days of negotiations in the Uruguayan capital.

European Commission President Ursula von der Leyen said at a press conference in Montevideo that the win-win agreement brings significant benefits to consumers and businesses in both the European Union and the South American countries concerned. The agreement focuses on fairness and mutual benefits, she stressed.

“We have listened to the concerns of our farmers and acted on them,”

said Ursula von der Leyen, adding that the agreement includes strong safeguards to protect the livelihoods of agricultural workers.

She said that European health and food safety standards remain intact. Exporters from Mercosur countries must comply with EU standards to access the EU market. The agreement will save EU companies four billion euros in export duties each year, she added.

According to a statement from the European Commission, the agreement will strengthen trade and political relations between the countries of the two regions, support economic growth, increase competitiveness and resilience by opening up trade and investment opportunities. It will ensure sustainable access to raw materials and expand export opportunities for small and medium-sized enterprises by cutting red tape.