EU, Mercosur Strike Partnership Deal to Boost Trade Ties
The EU and four members of a trading bloc of South American nations referred to as Mercosur -- Brazil, Argentina, Paraguay and Uruguay -- concluded a partnership agreement, which will "boost strategic trade and political ties" between the nations, the European Commission announced. Bolivia just became a member of Mercosur on July 8.
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The commission said the deal will "secure and diversify" supply chains, remove tariffs on EU goods to Mercosur, save over $4.2 billion in duties for EU businesses and ensure trade preferences in sectors including renewable energy technologies and low-carbon fuels. The EU added that the deal also focuses on sustainability, including by establishing hard "commitments to halt deforestation" and imposing clear commitments on sustainable developments, including on labor rights and sustainable management of forests.
In a joint statement, the presidents of the participating four Mercosur member states said the deal is the "largest trade agreement ever concluded by Mercosur." It "opens up opportunities for trade and investment" in key areas such as "health, industrial development and innovation," the countries said, according to an unofficial translation.
The deal needs to be reviewed by all parties, including the European Council and Parliament. The EU said it plans to release the text in the coming days.