Šefčovič: With the Mercosur agreement, the EU is creating the largest free trade zone in the world
Brussels – The President of the European Commission (EC) Ursula von der Leyen and the President of the European Council António Costa are to sign a free trade agreement between the European Union (EU) and four South American states grouped in the Mercosur association in Paraguay on Monday at 5:00 p.m. CET. The European Commissioner for Trade and Economic Security Maroš Šefčovič, who was involved in the finalization of the negotiations on this agreement, reiterated in a message to the media that the largest free trade zone in the world is being created, the TASR correspondent reports.
The signing of the trade agreement between the EU and Brazil, Argentina, Uruguay and Paraguay is widely covered in the European media, because the agreement has its supporters as well as loud critics. Maroš Šefčovič already on Friday (January 9) welcomed on the social network X the vote of the ambassadors to the EU, which confirmed that more than enough EU member states were found to approve the final signing of the agreement.
“It is a strategic step for a strategic agreement connecting 700 million consumers,” is how Šefčovič described the vote of the member states.
According to him, the EU-Mercosur partnership agreement is a “breakthrough success”, because it is an important moment not only for the EU’s trade policy, but also for the broader economic future of Europe.
“The agreement will create the largest free trade zone in the world, which will connect more than 700 million consumers on two continents. From the automotive industry through machinery to wine, chocolate and olive oil,” said the Slovak European Commissioner.
Products from the EU will gain privileged access to an attractive market that has long demanded high tariffs, sometimes up to 55%.
He also recalled that products from the EU will gain privileged access to an attractive market that has long demanded high tariffs, sometimes up to 55%. At the same time, this agreement will ensure access to critical minerals, which are increasingly important today.
“However, this agreement means much more than just trade figures. It is a strategic tool that will shape Europe’s role in the global economy for decades to come, strengthen our partnership with Latin America and protect the EU’s credibility as a reliable trading partner,” he explained.
He emphasized that his priority as European Commissioner for Trade remains that EU companies can benefit from this agreement as quickly as possible. He specified that, according to the EC’s expectations, exports of agricultural and food products from the EU to the Mercosur region will increase by 50%. At the same time, 344 iconic foods and beverages from the EU with protected designation will be protected, for example genuine champagne, Parmesan Reggiano or Irish whiskey.
“Overall, this agreement strengthens the extensive network of free trade agreements of the European Union, the largest in the world, which remains a key strategic asset for maintaining our global economic advantage,” Šefčovič described the situation. He added that the EU continues to negotiate trade agreements in other key regions of the world as well. (January 12)
