MERCOSUR

By a narrow vote, the European Parliament has effectively blocked the entry into force of the partnership agreement with Mercosur. This is yet another failure by the EU to improve its prospects for prosperity and economic transformation. The agreement that was signed is a step in the right direction, but delaying it means accumulating lost benefits—at a time when growth in the core of the euro area is dangerously close to zero.

After 25 years, negotiations have concluded on a trade agreement between the European Union and Mercosur, a bloc of South American countries. It aims to significantly liberalize trade between the two regions by eliminating tariffs on 91% of goods, reducing the remaining ones, and removing non-tariff barriers.

While the EU-MERCOSUR agreement is nearing its final stages, some remain opposed, risking a deadlock in the EU’s approval process. The EU must ensure smooth ratification to strengthen its strategic autonomy in these uncertain times. After 25 years of complex negotiations, the European Union and MERCOSUR have finally reached a landmark trade agreement.