Mercosur and EFTA Ink Historic Free Trade Agreement Amidst Global Trade Shifts
Mercosur and the European Free Trade Association have finalized a comprehensive free trade agreement, anticipated after years of negotiation. This pact will create a trade area for nearly 300 million people and grant enhanced market access for 97% of exports, needing further approval before its implementation.
South America's Mercosur and the European Free Trade Association (EFTA) reached a landmark free trade agreement, poised to cover most shipments between the blocs. This wraps up a decade-long dialogue, even as a broader Mercosur-EU trade pact faces delays amid global trade changes instigated by Trump's tariffs.
The EFTA—comprising Norway, Iceland, Switzerland, and Liechtenstein—and Mercosur, stating through a joint release, are set to experience better market access for over 97% of their exports. However, parliamentary approvals and a legal review are still required to bring this deal affecting a combined GDP of $4.3 trillion to fruition.
The Mercosur-EFTA deal follows exploratory talks initiated in 2015, and Brazilian Foreign Minister Mauro Vieira expressed optimism about its finalization under Brazil's current Mercosur presidency. Concurrently, challenges persist regarding another pact with the EU, with countries like France voicing concerns over agricultural impacts.
(With inputs from agencies.)
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