After more than two decades of difficult negotiations, the European Union and the South American bloc Mercosur have finally launched one of the world’s largest free-trade agreements, according to Hurriyet Daily News. The deal officially entered into provisional force on Friday, opening a new chapter in economic relations between the two regions.
Together, the EU and Mercosur; which includes Brazil, Argentina, Paraguay, and Uruguay, represent nearly 30 percent of the world’s gross domestic product and a market of more than 700 million people. The agreement removes tariffs on over 90 percent of traded goods, making it easier for products to move between Europe and South America.
European Commission President Ursula von der Leyen welcomed the agreement, saying European businesses would gain wider access to new markets as tariffs begin to fall. She described the deal as proof that international cooperation and open trade still matter in a world shaped by growing economic rivalry and uncertainty.
The pact is expected to benefit European exports such as cars, wine, and cheese. In return, South American countries will gain easier access to European markets for agricultural goods including beef, poultry, sugar, rice, honey, and soybeans.
However, the agreement has sparked strong political debate within Europe. France has led opposition against the deal, arguing that European farmers may struggle to compete with cheaper agricultural imports from Brazil and neighboring countries. French concerns created visible tension with Germany, which strongly supports the pact because of its export-driven economy.
Although the European Parliament has not yet fully approved the agreement and has referred legal questions to the EU’s highest court, Brussels decided to move forward with provisional implementation.
Supporters believe the deal will strengthen economic ties and reduce dependence on major powers such as the United States and China, while critics warn it could deepen pressure on European agriculture and environmental protections.
