July 18, 2019

European Union and Mercosur reach free trade agreement

The European Union (EU) and Mercosur reached a political agreement for an ambitious, balanced and comprehensive trade agreement.

The agreement - part of a wider Association Agreement between the two regions - will consolidate a strategic political and economic partnership and create significant opportunities for sustainable growth on both sides, while respecting the environment.

The EU is the first major partner to strike a trade pact with Mercosur, a bloc comprising Argentina, Brazil Paraguay and Uruguay. The agreement will cover a population of 780 million and cement the close political and economic relations between the EU and Mercosur countries. It represents a clear commitment from both regions to rules based international trade.

According to an EU communiqué the agreement upholds the highest standards of food safety and consumer protection, as well as the precautionary principle for food safety and environmental rules and contains specific commitments on labour rights and environmental protection, including the implementation of the Paris climate agreement and related enforcement rules.

The trade agreement is part of a comprehensive new Association Agreement under negotiation between the EU and Mercosur countries.

Canada recently concluded exploratory discussions for a possible free trade agreement with Mercosur countries.