EU–Mercosur Partnership Agreement

Uncommon card · No. 176698

The European Union (EU) and the South American trade bloc Mercosur reached a free trade agreement in principle in 2019. The planned deal was announced on 28 June at the 2019 G20 Osaka summit after twenty years of negotiations. Once ratified, both the EU and Mercosur will gradually reduce import duties on 91–92% of exports over a 15-year period, and increase import quotas for various products. The agreement was provisionally applied on 1 May 2026. Once ratified, it will represent the largest trade deal struck by both the EU (449 million inhabitants) and Mercosur (260 million inhabitants), in terms of numbers of citizens involved. The trade deal is part of a wider EU Association Agreement between the two blocs. Besides trade, the association agreement also deals with cooperation and political dialogue. Negotiations on these two parts were concluded on 18 June 2020. Proponents say the agreement will diversify trade, reducing reliance on China and the United States, thus also lessening the...

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