EU states' nod on Mercosur trade deal

European Union ambassadors provided provisional approval to the long-awaited free trade agreement with Mercosur, marking the end of negotiations that began 25 years ago.

The deal covers Mercosur's founding members: Argentina, Brazil, Paraguay, and Uruguay. It represents the EU's largest-ever tariff reduction pact, eliminating 4 billion euros ($4.66 billion) in duties on EU exports such as car parts, dairy products, and wines.EU exports primarily include machinery, chemicals, and transport equipment, while Mercosur supplies agricultural products, minerals, pulp, and paper.

Bilateral goods trade reached 111 billion euros ($129 billion) in 2024.The European Commission views the agreement as essential for accessing new markets to counter U.S.