After 20 years of negotiations, on June 28th, the European Union (EU) and South American bloc Mercosur, which comprises Argentina, Brazil, Paraguay and Uruguay, have agreed on the terms of a trade deal.
The pact is part of a wider Association Agreement between the two regions to consolidate a strategic political and economic partnership, covering a population of 780 million people and approximately a quarter of global gross domestic product. The EU, which is Mercosur’s biggest trade and investment partner, now becomes the first to strike such a deal with the bloc.
According to Jean-Claude Juncker, President of the European Commission, “this is a historical moment. In the midst of international trade tensions, we are sending today a strong signal with our Mercosur partners that we stand for rules-based trade. This makes it the largest trade agreement the EU has ever concluded.” Additionally, Brazilian President Jair Bolsonaro tweeted: "This will be one of the most important trade agreements of all time and will bring enormous benefits to our economy."