Historic! EU and Mercosur close free trade agreement

The President of the European Commission, Ursula von der Leyen, announced this Friday that negotiations for a free trade agreement between the European Union (EU) and Mercosur have been successfully concluded.

The agreement establishes one of the largest free trade zones in the world, involving more than 700 million people and a combined Gross Domestic Product (GDP) exceeding US$22 trillion, according to O Globo.

Ursula von der Leyen highlighted the continuous effort of negotiators over the years to reach a pact that she considers ambitious and balanced.

“The bond between Europe and the Mercosur countries is truly one of the strongest in the world, anchored in trust and enriched by a shared heritage of centuries,” she said.

The president added that the agreement transcends the economic sphere, highlighting its political importance and sending a clear message to the world about the new alliance.

The treaty is seen as a significant victory for Brazilian diplomacy, offering the possibility of strengthening commercial relations and attracting investments to Brazil and other Mercosur countries.

It is planned to create commercial and investment opportunities that respect the implementation of essential public policies in the areas of health, industrial development and innovation.

The negotiations, which culminated in today’s announcement, were resumed in 2023 under the coordination of Brazil. In the last two years, seven rounds of face-to-face negotiations were held between the two blocs in Brasília, marking an intense bilateral effort to reach the agreement.

The Brazilian government guaranteed that the agreement preserves space for public policies, including government purchases, trade in the automotive sector and exports of critical minerals.

Furthermore, the pact offers mechanisms to mitigate negative impacts of unilateral measures that may affect Mercosur exports.

Commitments were also established in sustainable development, with a collaborative and balanced approach, recognizing that challenges in this area are common and require cooperation.