European business, represented by more than 28 associations across multiple sectors, has welcomed the signing of the Free Trade Agreement between the European Union and Mercosur, calling it a landmark achievement for global trade. The agreement establishes one of the world’s largest trading blocs and sends a strong signal that the EU remains committed to open, rules-based international commerce.
By removing trade barriers and eliminating tariffs on more than 90% of EU exports, the agreement will grant European companies access to over 270 million consumers. Business leaders underline that this will significantly support exports, stimulate investment and help companies diversify supply chains by securing access to essential products and raw materials from Mercosur countries.
According to calculations by the European Commission’s Directorate-General for Trade (DG Trade), the agreement is expected to add €77.6 billion to EU GDP by 2040, while increasing EU exports to Mercosur by 39%.
Following the signing, European business associations stress that the next crucial step lies with the European Parliament. They are calling on Members of the European Parliament to proceed with swift ratification, emphasising that after more than 25 years of negotiations, Europe cannot afford further delays in activating this new engine of economic growth and prosperity.
Mercosur (Southern Common Market) is a regional trade bloc established to promote economic integration and free trade among South American countries.
Founded in 1991 with the signing of the Asunción Treaty, Mercosur’s full members are Argentina, Brazil, Paraguay and Uruguay. The bloc aims to reduce customs duties, facilitate trade among member states and strengthen a common market structure.
Today, Mercosur represents a market of more than 270 million people and holds a strategic position in global supply chains thanks to its strong agricultural resources, raw materials and industrial capacity.
