The comprehensive trade agreement forged between the European Union and the South American bloc Mercosur is set to be formalized on January 17 in Paraguay, as announced by Argentina’s Foreign Minister Pablo Quirno on Friday. “We will sign… the most ambitious agreement between our two blocs on January 17 in Paraguay,” Quirno stated, describing it as a “historic” deal. The EU granted a long-awaited approval on Friday for the extensive trade agreement, establishing a new marketplace encompassing over 700 consumers. After over 25 years of development, proponents regard the agreement as essential for enhancing exports, aiding the continent’s struggling economy, and strengthening diplomatic relations amid a period of global instability.
The agreement has garnered support from business organizations; however, it faces significant opposition from numerous European farmers, particularly those in influential France’s agricultural sector. Nonetheless, a significant majority of the European Union’s 27 member states endorsed the agreement after an ambassadors’ meeting in Brussels, thereby facilitating its impending signature. Argentina’s Foreign Ministry praised the European Council’s approval to sign the agreement with Mercosur, asserting in a statement that it will enhance exports and draw in investment. President Javier Milei and Economy Minister Luis Caputo characterized the agreement as “historic.” The positive developments persist. The conclusion,” stated the head of state.
Following a quarter-century of negotiations, Argentina is set to finalize a landmark agreement between Mercosur and the EU on 17 January in Paraguay,” Caputo remarked with enthusiasm. Caputo asserted that “this agreement would not have been possible without the leadership of President Javier Milei, Foreign Minister Pablo Quiro and Secretary Pablo Lavigne in making Argentina increasingly free and prosperous.” Caputo asserts that Argentine products will gain entry to a market encompassing over 700 million individuals, which accounts for approximately 20 percent of global GDP. Caputo stated that the removal of tariffs by the EU on 92 percent of Argentine exports, along with preferential access for an additional 7.5 percent, is expected to enhance trade, stimulate investment, and facilitate job creation in Argentina.
The minister stated that the agreement “will put Argentina on an equal footing with other countries that currently enjoy preferences with the European bloc,” referencing the examples of Chile, Mexico, South Africa, Egypt, Morocco, and Ukraine. Argentina’s former president Mauricio Macri, whose government oversaw the finalisation of terms with the EU, stated that the deal “opens up an unbeatable opportunity for the region.” This news is indeed welcome. The free-trade agreement between Mercosur and the European Union represented a primary objective of our government. “An unbeatable stage is opening up for the region,” Macri stated in a social media post. National senator and former security minister Patricia Bullrich, who also served in Macri’s government, participated in the celebrations. Argentina continues to realize tangible advancements for its populace,” she stated, adding: “After 25 years, the Mercosur-European Union agreement has been ratified.”