© Leaders League
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."