After more than two decades of negotiations, the European Union and Mercosur are still working to finalize a major trade agreement that aims to create one of the largest free trade zones in the world. This agreement would cover over 700 million people and nearly 25% of global GDP, similar to the U.S.-Mexico-Canada free trade agreement.
The deal seeks to reduce tariffs and trade barriers, making it easier for businesses on both sides to export goods. For the EU, the agreement would result in lower tariffs on products like cars, machinery, and chemicals. On the other hand, Mercosur countries would gain better access to EU markets for agricultural exports such as beef, poultry, and sugar.
