BRUSSELS, Jan 17 (KUNA) -- The European Union and the Mercosur bloc, comprising Brazil, Argentina, Uruguay and Paraguay, on Saturday signed "a historic" partnership agreement on free trade after 25 years of negotiations.
European Commission President Ursula von der Leyen said during the signing ceremony in the Paraguayan capital, Asuncion, that "the European Union chooses fair trade over tariffs, and a long-term partnership over isolation." She stressed that the agreement"is not only a trade deal, but also a political statement reflecting the commitment of both sides to openness, cooperation and mutual gain".
Von der Leyen added that the agreement will contribute to eliminating tariffs worth billions of euros, opening public procurement markets and integrating industrial value chains.
She noted that EU exports to Mercosur could increase by up to 50 billion euros while the bloc's exports may rise by around 9 billion euros generating growth and job opportunities on both sides.
She explained that the agreement includes binding commitments on sustainability, including efforts toward climate neutrality by 2050, the protection of labour rights and the promotion of sustainable development, alongside strengthening the geopolitical partnership and political dialogue on global issues.
The EU chief affirmed that the agreement "is good for Europe and for every Member State," pointing out that around 60,000 European exporting companies, half of them small and medium-sized enterprises will benefit from tariff reductions and simplified customs procedures, while safeguards are in place to protect sensitive agricultural sectors and preserve 350 European geographical indications.
The agreement establishes one of the world's largest free trade areas, creating a shared market of nearly 700 million people, and aims to boost trade and investment between the two sides on a rules-based foundation, providing a stable and predictable environment for businesses. (end) arn.gb