May 5, 2025 11:04 pm
Full News

EU and Mercosur Finalize Landmark Free Trade Deal After Two Decades

The European Union (EU) and Mercosur, South America’s primary trade bloc, have reached a historic agreement on a free trade deal after over 20 years of negotiations. The announcement was made on Friday by European Commission President Ursula von der Leyen in Montevideo, Uruguay.
“This is a win-win agreement,” von der Leyen declared during a joint press conference with Mercosur leaders, including the presidents of Argentina and Brazil. She described the pact as a significant economic and political milestone, emphasizing its importance amidst global trends toward isolation and fragmentation.

A New Era in Trade
The deal establishes one of the world’s largest free trade zones, encompassing over 700 million people and nearly 25% of global GDP. It aims to reduce tariffs and trade barriers, facilitating exports for businesses on both sides.
Mercosur includes Brazil, Argentina, Paraguay, Uruguay, and Bolivia, though Venezuela’s membership remains suspended.
While South American leaders welcomed the agreement, resistance persists within the EU. France and other member states have voiced concerns, particularly regarding agricultural competition and environmental standards. French Trade Minister Sophie Primas remarked, “Today is not the end of the story,” signaling continued debate among EU nations.

Economic Opportunities Amidst Challenges
The agreement, which still requires approval from 15 of the 27 EU member states and a simple majority in the European Parliament, has stirred both optimism and opposition.
Von der Leyen highlighted the potential benefits for approximately 60,000 European companies exporting to Mercosur nations, emphasizing reduced tariffs, streamlined customs procedures, and better access to critical raw materials.
However, European farmers and environmental groups have criticized the deal. Farmer lobbies argue that Mercosur products fail to meet EU standards, creating unfair competition, while environmental groups like Friends of the Earth label it a “climate-wrecking” deal. Protests are planned in Brussels.

Diverging Views Across Europe
Germany and Spain have championed the deal as a pathway to greater trade diversification, especially in light of reduced access to the Russian market and concerns over dependence on China. German Chancellor Olaf Scholz praised the agreement, stating it opens a free market for over 700 million people and boosts competitiveness.
Trade and industry groups in Germany echoed this sentiment, with BDI President Siegfried Russwurm calling it a strategic step for rules-based trade amidst global fragmentation.
However, countries like Italy and Poland have expressed reservations, signaling that internal EU debates are far from over.

Looking Ahead
The agreement marks a significant step toward enhanced EU-Mercosur cooperation. Supporters argue it will not only boost economic ties but also strengthen political alliances. Yet, with key hurdles remaining, the coming months will determine whether this deal truly becomes a landmark achievement or faces further delays.

Related News
Apple to Invest $500 Billion in the United States
Australian PM Labels Melbourne Synagogue Fire as Suspected Terrorism
The Rise of Islamic Fundamentalism Threatens Music Culture in Bangladesh
Legendary Actor Mamunur Rashid Barred from Performing by Yunus Government Directive
US Warns of Possible Withdrawal from Ukraine Peace Efforts
Shrek 5 Release Delayed to December 2026
Related Posts
Russia-Ukraine Ceasefire Possible “At Any Moment
Pakistan Accuses India of Violating Indus Waters Treaty, Prepares Formal Notice
India Suspends Indus Water Treaty Amid Rising Tensions with Pakistan
Myanmar Junta May Weaponize Nuclear Power Plant, Warns UN Envoy
India-Pakistan Tensions Escalate Following Pahalgam Attack
Trump Announces 100% Tariff on All Foreign Films
More News

2025-2026 White House Fellowship

The application for the 2025-2026 White House Fellows Program is now open. Today, Rose Vela, Director of the President’s Commission on White House Fellowships, announced the opening of the application season for the 2025-2026 White House Fellowship year: “This uniquely non-partisan program has a distinguished legacy that reaches back more than half a century, and […]

Iran Agrees to Stricter IAEA Monitoring Amid Accelerated Uranium Enrichment at Fordow

VIENNA – Iran has agreed to enhanced monitoring by the International Atomic Energy Agency (IAEA) at its Fordow Fuel Enrichment Plant (FFEP), where it recently escalated uranium enrichment to levels near weapons-grade, the IAEA reported on Thursday. The agreement follows the agency’s disclosure last week that Iran had significantly increased the pace of uranium enrichment […]

20 Bodies Washed Ashore Off Libya, Suspected to Be Bangladeshis

The bodies of 20 migrants have been recovered from an area on the Mediterranean coast of Libya. Most of them are believed to be Bangladeshi nationals. However, the identity is yet to be confirmed. This information was found in the sources of Bangladesh Embassy in Libya. “The embassy has received information from various sources that […]

Arsenal lose points at Brighton

Mikel Arteta’s team lost the chance to reduce the gap with Liverpool to three points in the league table. Arsenal could not be very effective in the attack. After going ahead in the beginning, the gap could not hold. Mikel Arteta’s side lost the chance to reduce the gap with Liverpool to three points in […]

Hamas Announced The Names Of 3 Hostages For Release

Israeli forces launched an attack on northern Gaza after the ceasefire agreement was delayed Hamas cited ‘technical difficulties’ in releasing a list of potential hostages to be released under the terms of the ceasefire agreement. Finally the names of three hostages who will be released by the organization have been announced. According to the conditions […]

Rats Behind the Wheel: Driving Through Evolutionary Insights

Nafis Sadique Shatil In a groundbreaking experiment, scientists taught rats to drive tiny cars. While this might sound like an amusing novelty, the implications are far-reaching, offering a unique lens to understand evolution and the adaptability of life. These rodent drivers don’t just steer toward treats—they navigate the evolutionary narrative of how species acquire and […]

Nobel Laureate Nihon Hidankyo Urges Youth to Lead Fight for a Nuclear-Free World

Nobel Peace Prize Awarded to Hiroshima and Nagasaki Survivors’ Group Nihon Hidankyo OSLO – Nihon Hidankyo, a group representing survivors of the 1945 atomic bombings of Hiroshima and Nagasaki, was honored with this year’s Nobel Peace Prize for its tireless advocacy for a nuclear-free world. The award was presented on Tuesday at a ceremony in […]

Climate Change ‘Bares Its Fangs’ as Disaster Costs Soar to $140 Billion in 2024, Munich Re Reports

In a sobering assessment of the growing threat posed by climate change, Munich Re, the world’s premier reinsurance company, has detailed that 2024 was one of the most financially devastating years for natural disasters on record. The global insured losses from weather-related catastrophes reached an alarming $140 billion, a significant jump from the previous year, […]

US Warns North Korea Gains War Experience Fighting with Russia in Ukraine

United Nations, Jan 8, 2025 – The United States has raised concerns that North Korea is benefiting from its troops fighting alongside Russia against Ukraine, gaining valuable experience that makes Pyongyang “more capable of waging war against its neighbors,” according to US Deputy Ambassador to the UN, Dorothy Shea. Russia has strengthened its diplomatic and […]

IMF Approves Third Review of Sri Lanka’s $2.9bn Bailout

$333 Million Released as Economic Recovery Takes Shape The International Monetary Fund (IMF) has approved the third review of Sri Lanka’s $2.9 billion bailout, signaling cautious optimism about the country’s economic recovery while warning of persistent vulnerabilities. On Saturday, the IMF announced the release of $333 million, bringing total disbursements under the program to $1.3 […]