The EU and a South American trade bloc reach a giant trade deal after 25 years of talks
The European Union has reached a blockbuster free trade agreement with Brazil, Argentina and the three other South American nations in the Mercosur trade alliance
MONTEVIDEO, Uruguay — The European Union reached a blockbuster free trade agreement Friday with Brazil, Argentina and the three other South American nations in the Mercosur trade alliance, capping a quarter-century of on-off negotiations even as France vowed to derail the contentious accord.
Provided it is ratified, the accord would create one of the world's largest free trade zones, covering a market of 780 million people that represents nearly a quarter of global gross domestic product.
The accord's proponents in Brussels say it would save businesses some $4.26 billion in duties each year, slashing red tape and removing tariffs on products like Italian wine, Argentine steak, Brazilian oranges and German Volkswagens.
Its critics in France, the Netherlands and other countries with big dairy and beef industries say the pact would subject local farmers to unfair competition and cause environmental damage.
From Uruguay, the host of the Mercosur summit, European Commission President Ursula von der Leyen hailed the deal as a “truly historic milestone" at a time when global protectionism is on the rise.
“I know that strong winds are blowing in the opposite direction, toward isolation and fragmentation, but this agreement is our clear response,” von der Leyen said, an apparent reference to U.S. President-elect Donald Trump's vows to protect American workers and goods.
Under pressure from his country's powerful and vocal farming lobby, French President Emmanuel Macron said Friday the deal remained “unacceptable” as it stands and stressed that governments have not
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