After 25 years of intense negotiations, Mercosur and the European Union (EU) have officially finalized and announced a historic free trade agreement. The decision was made during the Mercosur Summit in Montevideo, Uruguay, marking a significant milestone in the strengthening of trade relations between the two economic blocs.
The announcement confirms the successful conclusion of the negotiations, according to the Brazilian Confederation of Agriculture and Livestock (CNA). The next step involves a legal review of the agreement texts, followed by their translation into the official languages of the participating countries before being ratified by the Parliaments of each nation.
The President of the European Commission Ursula von der Leyen and her counterparts from four Mercosur countries (Brazilian President Lula, Argentinian President Milei, Paraguayan President Peña, and Uruguayan President Lacalle Pou) finalised negotiations for a groundbreaking EU-Mercosur partnership agreement.
“After 25 years, Mercosur and the EU announced today the conclusion of negotiations for the free trade agreement between the blocs,” CNA’s International Relations Director, Sueme Mori, said. “This is great news for Brazil and for the Brazilian agricultural sector. CNA has been following this process from the beginning, always striving for a balanced negotiation and ensuring that the process’ outcomes yield real advantages for Brazil.”
President von der Leyen said this “is a win-win agreement, which will bring meaningful benefits to consumers and businesses, on both sides.
“We are focused on fairness and mutual benefit. We have listened to the concerns of our farmers, and we acted on them. This agreement includes robust safeguards to protect your livelihoods. EU-Mercosur is the biggest agreement ever, when it comes to the protection of EU food and drinks products. More than 350 EU products now are protected by a geographical indication. In addition, our European health and food standards remain untouchable. Mercosur exporters will have to comply strictly with these standards to access the EU market. This is the reality of an agreement that will save EU companies €4 billion worth of export duties per year.”
This agreement comes at a critical time for both sides, presenting opportunities for major mutual gains through strengthened geopolitical, economic, sustainability and security cooperation.
- It will boost strategic trade and political ties between like-minded and reliable partners.
- It will support economic growth, boost competitiveness and strengthen resilience on both sides by opening up trade and investment opportunities and securing sustainable access and processing of raw materials.
- It represents a major milestone in fighting climate change with strong, specific and measurable commitments to stop deforestation.
- It considers the interests of all Europeans, including the critically important EU farming sector. It will help increase EU agri-food exports while protecting sensitive sectors.
- It upholds the EU’s standards on animal health and food safety, preventing unsafe products from entering our market.
