Agencies
The controversial free trade deal between the EU and four South American countries, which has been under discussion for 25 years, appeared to be within reach as European Commission President Ursula von der Leyen was due in Uruguay ahead of the summit between the parties, where a potential agreement might be finalized.
"The finish line of the EU-Mercosur agreement is in sight,” von der Leyen posted on X to announce her pending arrival in Montevideo.
On Friday, in the capital city of Uruguay, at a summit of the South American trading bloc, Mercosur, the final agreement is expected to be announced.
The EU-Mercosur deal, covering Brazil, Argentina, Paraguay, Uruguay and the EU’s 27 member states, seeks to establish one of the world’s largest free trade zones, encompassing over 700 million people.
The trade deal’s primary aim is to lower tariffs and boost trade. Bolivia, a new member of Mercosur, and Venezuela, which has been suspended since 2016, are not included.
Backed by Germany and Spain, the European Commission plans to authorize the EU-Mercosur Trade Agreement, which would allow the South American countries to export greater quantities of beef, chicken or sugar to Europe without paying customs duties.
Following the conclusion of the negotiations, the texts for the agreement still need to be legally reviewed and translated into the languages of the signatory states before they can be signed.