São Paulo, April 25 (ANI): The long-awaited trade agreement between Mercosur and the European Union is set to come into force on May 1, marking a significant shift in global trade dynamics and Brazil’s economic positioning.
The agreement will create the world’s largest bilateral free trade zone, covering a combined market of approximately 720 million people and a gross domestic product estimated at $22 trillion, according to reports.
Speaking to A Voz do Brasil, Minister Marcio Elias Rosa described the pact as a historic milestone connecting Mercosur nations—Brazil, Argentina, Paraguay, Uruguay, and soon Bolivia—with all EU member states.
A central feature of the agreement is the phased elimination of import tariffs on nearly 95 percent of goods traded between the two blocs. The gradual approach is intended to maintain economic stability while enhancing trade competitiveness.
Mercosur exports, particularly commodities such as meat, soy, and oil, are expected to benefit from faster tariff reductions compared to European industrial products.
Beyond trade liberalization, the agreement is projected to increase foreign investment and deepen economic ties between the regions. Analysts believe it could enhance Mercosur’s appeal to global partners and strengthen its standing in international markets.
Brazilian officials also anticipate positive domestic effects, particularly in employment. With more than 100 million people currently employed, the government expects that expanded trade and supportive industrial policies will contribute to job creation and income growth.
The agreement represents not only an economic development but also a broader strategic realignment, positioning Brazil and its regional partners within one of the most influential global trade networks. (ANI)
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