Sao Paulo [Brazil], April 25 (ANI): The long-awaited Mercosur-European Union trade agreement takes effect on May 1, creating what officials call the world’s largest bilateral free trade zone. The pact covers a combined market of about 720 million people and a GDP near $22 trillion, according to Brasil 247.
Minister Marcio Elias Rosa, speaking to A Voz do Brasil and cited by Brasil 247, described the agreement as a historic milestone linking Mercosur — Brazil, Argentina, Paraguay, Uruguay, and soon Bolivia — with all EU member states. The deal provides for the phased elimination of import tariffs on roughly 95% of traded goods to balance economic stability with increased competitiveness. Mercosur exports, notably meat, soy and oil, are expected to see faster tariff reductions than many European industrial products.
Beyond tariff cuts, the agreement is expected to attract foreign investment and deepen economic ties between the two regions, potentially strengthening Mercosur’s role in global markets. Brazilian authorities also anticipate domestic benefits: with more than 100 million people currently employed, officials say expanded trade and related industrial policies should support job creation and higher incomes.
Observers view the pact as both an economic boost and a strategic realignment that positions Brazil and its regional partners within a major global trading network, as reported by Brasil 247. (ANI)
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