Economy

Mercosur and EU close deal on free trade

The settlement between the blocs comes after almost 20 years of negotiations

  • The deal covers goods, services, investments and government purchases
  • Almost every kind of exportation done by Mercosur will have a better entry on the European market

The Mercosur and the European Union have signed a free trade deal after almost 20 years off negotiations. This is the largest agreement ever signed by the blocs and covers services, goods like meat and vegetables, and also investments and government purchases.

The deal was settled on Thursday, 27, after meetings in Brussels. That’s the second largest treaty signed by Europeans – the one signed with Japan still remains as the major one. For South Americans, this is the biggest deal ever signed.

Agricultural products like orange juice, fruits, coffee, meat, honey, eggs and ethanol will have their tariffs eliminated when entering EU. According to EXAME, almost 100% of Mercosur’s exports will have preferences for better access to the European market.