The European Union has started putting its major trade deal with the Mercosur into action, marking a big step after more than 25 years of negotiations.
European Commission President Ursula von der Leyen said the agreement is already bringing “real and visible” benefits. One of the biggest changes is that tariffs taxes on imports and exports will begin to decrease, making trade cheaper and easier between the two regions.
The deal is expected to create a massive free trade zone covering over 700 million people across Europe and countries like Brazil, Argentina, Paraguay, and Uruguay. Businesses, especially small and medium-sized ones, are likely to gain better access to new markets, while investors benefit from more predictable rules.
However, the agreement is not without controversy. Some European countries and lawmakers are still concerned about issues like environmental protection, agriculture competition, and fair trade standards.
For now, the “provisional application” phase allows parts of the deal to take effect while giving time for further review and approval by the European Parliament and member states.
In simple terms: trade between Europe and South America is starting to get easier but the political debate around it is far from over.
Source: AA
