EU trade deal with South America’s Mercosur bloc takes provisional effect
The European Union and South America's Mercosur bloc have provisionally implemented a long-awaited trade deal after 25 years of negotiations, creating one of the world's largest free trade areas with 720 million consumers. The agreement lowers tariffs on over 90% of bilateral trade, benefiting European exports like cars and cheese while opening European markets to South American agricultural products. The deal faces legal challenges in the EU and opposition from farmers and environmental groups concerned about market competition and deforestation.
- ▪The EU-Mercosur trade deal was signed in January 2026 in Paraguay and provisionally took effect on May 1, 2026.
- ▪The agreement eliminates tariffs on more than 90% of bilateral trade and covers an estimated $22 trillion in economic output.
- ▪European Commission President Ursula von der Leyen pushed for provisional implementation, bypassing the European Parliament, which has led to legal challenges.
- ▪Brazilian President Luiz Inacio Lula da Silva signed a decree to validate the deal in Brazil, calling it a response to US tariffs and a reaffirmation of multilateralism.
- ▪The deal faces opposition from Irish farmers, environmental groups, and Mercosur-based companies concerned about competition and deforestation.
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News|Business and EconomyEU trade deal with South America’s Mercosur bloc takes provisional effectThe long-awaited deal creates one of the world’s largest free trade areas with 720m potential consumers.ListenListen (3 mins)SaveClick here to share on social mediashare-nodesSharefacebookxwhatsapp-strokecopylinkgoogleAdd Al Jazeera on GoogleinfoThe EU-Mercosur deal was signed in Paraguay in January [Cesar Olmedo/Reuters] (Reuters)By Al Jazeera Staff and The Associated PressPublished On 1 May 20261 May 2026The long-awaited trade deal between the European Union and South America’s Mercosur bloc has provisionally come into effect, boosting business ties amid tariff threats and deepening uncertainty around global cooperation.The pact took effect on Friday after 25 years of negotiations, creating…
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