Berlin/Montevideo (d.de/bmwk.de) – The EU and the Mercosur states of Argentina, Brazil, Paraguay and Uruguay have concluded negotiations on the Mercosur free trade agreement, expanding their existing partnership and laying the foundations for closer trade relations.
“After more than 20 years of negotiations, political agreement between the Mercosur states and the EU has been reached – now that a major obstacle has been overcome,” wrote Federal Chancellor Olaf Scholz on X. “This has the potential to create a free market for more than 700 million people, fostering increased growth and competitiveness.”
The Federal Government has worked hard to finalise the agreement, which is set to create one of the largest trading areas in the world with a total population of 750 million. Among other things, the agreement provides for the elimination of customs duties for European exports and imports as well as improved access to an attractive services market. It also facilitates access to critical raw materials such as lithium and copper which are urgently needed for the transformation of the economy.
Federal Economics Minister Habeck said the conclusion of the negotiations was good news. He welcomed the expansion of the partnership, which he said aimed to achieve the goal of strengthening the shared market and trade and sustainably reducing dependencies while at the same time underpinning climate targets, environmental standards, and human rights.
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