by supplychainreport
The European Union and South America’s Mercosur bloc reached a long-delayed free trade agreement on Friday, marking a significant milestone after more than two decades of negotiations. The deal now faces a review process in Europe, where some countries have expressed concerns.
European Commission President Ursula von der Leyen described the agreement as “a win-win” that benefits consumers and businesses on both sides while including safeguards for farmers. European Council President Antonio Costa highlighted the deal’s potential to enhance competitiveness, job creation, and trade openness.
South American leaders also welcomed the agreement. Brazilian President Luiz Inacio Lula da Silva emphasized the expansion of export markets and investment flows, along with recognition of Mercosur’s environmental commitments. Argentine President Javier Milei noted the long negotiation process and the importance of seizing global trade opportunities.
Other European and Mercosur leaders shared their perspectives, including Spanish Prime Minister Pedro Sanchez, German Chancellor Olaf Scholz, Paraguayan President Santiago Pena, and Uruguayan President Luis Lacalle Pou, highlighting the agreement’s potential for economic growth, competitiveness, and increased regional engagement.
Some opposition was noted, with the French Presidency indicating that the draft agreement, in its current form, would require further adjustments to address agricultural concerns.
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