The European Union announced Friday it has finalized a landmark trade accord with the South American trading bloc Mercosur, which includes Brazil, Argentina, Uruguay, and Paraguay. After decades of negotiation and a stalled agreement in 2019, the finalized pact aims to deepen economic ties while incorporating measures to address environmental and agricultural concerns.
A Long-Awaited Agreement
Negotiations for the EU-Mercosur trade deal began in 1999, but progress was delayed due to disputes over market access, environmental protections, and agricultural sensitivities. The 2019 draft agreement failed to take effect after European stakeholders raised concerns over deforestation in the Amazon and the impact on EU farmers.
European Commission President Ursula von der Leyen highlighted the accord’s mutual benefits while addressing criticism from EU agricultural sectors.
Key Provisions
The agreement includes carefully managed import quotas to prevent the EU market from being overwhelmed by South American commodities like beef, a key concern for European farmers. It also incorporates the entire text of the Paris Climate Agreement, reflecting enhanced commitments to sustainability and environmental standards.
