The European Commission has approved major trade agreements with the South American Mercosur bloc and Mexico, calling them “milestones” in the EU’s efforts to diversify trade ties. The Mercosur deal now requires approval from at least 15 of the EU’s 27 member states to come into effect.
The Mercosur bloc, comprising Brazil, Argentina, Bolivia, Paraguay, and Uruguay, will gradually remove tariffs on 91% of EU exports, including cars, machinery, and pharmaceuticals. In return, Mercosur countries will gain easier access for their agricultural goods to EU markets. To address concerns from EU farmers, the deal includes safeguards for sensitive agricultural products to prevent harmful surges in imports.
The Mexico agreement strengthens trade with the EU’s longstanding Latin American partner, benefiting EU agricultural exporters since Mexico is a net food importer. Both deals are seen as strategic steps to enhance economic growth, reduce tariffs, and expand market access for EU businesses.