By chatnewstv.com
BRUSSELS — The European Council on Saturday authorized the signature of a landmark trade and partnership agreement with the Mercosur bloc, signaling the end of more than 25 years of negotiations and clearing the way for the creation of the world’s largest free trade zone.
The decision greenlights two distinct tracks: the EU-Mercosur Partnership Agreement (EMPA), a comprehensive framework covering political dialogue and cooperation, and an Interim Trade Agreement (iTA) designed to fast-track economic benefits.
The deal links the European Union with the Mercosur nations—Argentina, Brazil, Paraguay, and Uruguay—creating a combined market of over 700 million consumers.
“After over 25 years, today’s decisions mark a historic step forward in strengthening the EU’s strategic partnership with Mercosur,” said Michael Damianos, Cyprus’ minister for energy, commerce, and industry. “At a time of growing global uncertainty, it is essential that we reinforce our political cooperation, deepen our economic ties and uphold our shared commitment to sustainable development.”
The interim agreement, which falls under the EU’s exclusive competence, allows the bloc to implement tariff reductions and market access for sectors including agriculture, automotive, and pharmaceuticals without waiting for ratification from individual member states’ parliaments.
However, the deal arrives amid long-standing concerns from European farmers regarding competition. To address this, the Council included specific “bilateral safeguards” that allow the European Commission to intervene and address market disturbances caused by sensitive agricultural imports.
“These temporary arrangements ensure a high level of protection for EU farmers and agri-food sectors during the transition period,” the Council stated in its announcement.
The agreements now head to the European Parliament for consent. While the interim trade deal can take effect shortly after parliamentary approval, the full Partnership Agreement will require ratification by all EU member states—a process that has historically proven difficult for controversial trade deals.
The economic stakes are significant. In 2024, trade in goods between the two blocs exceeded €111 billion (approximately $121 billion), a 36% increase over the previous decade. Beyond trade, the EMPA establishes formal cooperation on climate action, digital transformation, and human rights.
Negotiations for the pact originally began in 1999 but stalled for decades over environmental concerns and agricultural protections before reaching a breakthrough in December 2024.
