Montevideo, December 6, 2024 – After 25 years of negotiations, Mercosur and the European Union (EU) reached an agreement today to establish a free trade area between the two blocs. The announcement was made within the framework of the 65th Mercosur Summit, held in Montevideo, Uruguay, with the presence of the presidents of Argentina, Javier Milei; of Brazil, Luiz Inacio Lula da Silva; of Uruguay, Luis Lacalle Pou; of Paraguay, Santiago Peña, and the President of the European Commission, Ursula von der Leyen.
This agreement, which resumes and consolidates the progress achieved in 2019, lays the foundations for expanding trade, investment and cooperation opportunities between the two regions. After several years of adjustments to the originally proposed conditions, especially in environmental matters, the agreement seeks to establish a clear regulatory framework, reduce tariff barriers, and facilitate the flow of goods and services, for the benefit of both producers and consumers.
During the presentation, the host President, Luis Lacalle Pou, and the President of the European Commission, Ursula von der Leyen, highlighted the historic nature and economic potential of the agreement. They also acknowledged that the joint effort to reach this consensus is a starting point and not a final destination: it will now be up to the respective Parliaments and Congresses to ratify the agreement, as well as to the public and private sectors to work on its effective implementation.
The other leaders of the South American bloc, for their part, stressed the importance of the step taken. President Javier Milei underlined the significance of the moment, while President Lula Da Silva described it as a historic day. President Peña, although he did not say he was completely satisfied, said that the agreement generates hope and new perspectives. Von der Leyen, for her part, emphasized the commitment to environmental sustainability and safeguards for European producers, in order to ensure the acceptance of the agreement in the community context.
For the Mercosur and Americas Chamber of Commerce, this agreement represents an unprecedented opportunity for its members. The convergence towards greater free trade between Mercosur and the European Union opens the doors to new markets, encourages productive development, strengthens the exchange of knowledge, promotes technological innovation and stimulates job creation throughout the region. The Chamber is available to its members to accompany this process, inform them about the conditions and requirements of the new regulatory framework, and facilitate the use of new opportunities arising from this historic alliance.
