Mercosur and EFTA Forge Groundbreaking Free Trade Deal
Mercosur and EFTA have signed a pivotal free trade deal, fostering deeper ties between South America and European countries. The agreement, covering goods and services, aims to boost bilateral trade by granting improved market access. Each nation must ratify the deal for its implementation.
The Mercosur bloc has reached a historic free trade agreement with the European Free Trade Association (EFTA), comprising Iceland, Liechtenstein, Norway, and Switzerland. Announced on Tuesday in Rio de Janeiro, the deal signifies a major step in strengthening economic ties between South America and Europe amidst global trade tensions.
The agreement, which covers a vast array of areas including goods, services, investment, and intellectual property rights, involves Argentina, Brazil, Paraguay, and Uruguay. It is expected to create a trade zone encompassing nearly 300 million people with a combined GDP exceeding $4.3 trillion, as per a joint statement.
While promoting international trade amidst U.S. tariffs, the deal's success depends on ratification by involved countries. Furthermore, Mercosur continues to seek trade diversification by pursuing negotiations with the European Union, the United Arab Emirates, Canada, Mexico, and India.
(With inputs from agencies.)
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