Montevideo, Uruguay – December 6, 2024 – A major milestone in international trade and diplomacy was achieved on December 6, 2024, as the Presidents of Brazil, Argentina, Paraguay, and Uruguay, along with representatives of the European Commission, announced the definitive conclusion of negotiations on the long-awaited MERCOSUR-European Union Partnership Agreement. The announcement was made at the LXV MERCOSUR Summit in Montevideo, Uruguay, and marks the successful end of over two years of intense bi-regional talks.
This groundbreaking agreement is the largest trade deal ever concluded by MERCOSUR (the Southern Common Market) and one of the largest free trade areas in the world. Together, MERCOSUR and the European Union (EU) represent nearly 718 million people and economies that collectively account for almost $22 trillion in total GDP.
The Partnership Agreement, which now enters the final stages of preparation for signature, is poised to create new economic opportunities for both regions, fostering closer ties between MERCOSUR’s four founding countries—Brazil, Argentina, Paraguay, and Uruguay—and the EU member states. The deal includes provisions to enhance trade, investment, and cooperation, while safeguarding the capacity of both regions to implement domestic public policies in critical sectors like health, industrial development, and innovation.
Key Features of the Agreement
The historic deal incorporates a balance between economic growth and the protection of key policy areas. Under the guidance of President Luiz Inácio Lula da Silva of Brazil, the agreement ensures that MERCOSUR countries retain the flexibility to shape policies in areas such as government procurement, automotive trade, and the export of essential minerals. The agreement also includes mechanisms to mitigate the potential negative impact of unilateral trade measures on MERCOSUR exports, ensuring fairer terms for all parties involved.
The deal also sets a strong focus on sustainable development, with both MERCOSUR and the EU agreeing on collaborative commitments that address shared challenges such as climate change, biodiversity, and social inclusion. These commitments are designed to be cooperative and balanced, recognizing the global nature of these issues and the need for collective action.
Strengthening Regional Integration
In addition to enhancing economic and trade relations, the agreement underscores MERCOSUR’s role as a key player in regional integration. As a vital platform for Brazil, Argentina, Paraguay, and Uruguay, the agreement is expected to facilitate deeper integration of these economies into global markets, boosting exports, foreign direct investment, and technological exchange.
Shared Values and Global Cooperation
The MERCOSUR-EU Partnership is not only about trade; it is also about shared values and principles. Both regions are committed to the defense of democracy, the promotion of human rights, the advancement of peace, and sustainability. The agreement includes provisions for ongoing dialogue on these issues, strengthening cooperation on global challenges beyond economics.
President Lula emphasized the importance of these common values in his remarks following the announcement, stating that the agreement would not only open new economic opportunities but also foster stronger political ties between MERCOSUR and the EU. He added that this partnership would contribute to the global fight against inequality and climate change, ensuring that both regions work together on shared goals for a more equitable and sustainable world.
Next Steps and Future Prospects
The official texts of the agreement will be released in the coming days, and both MERCOSUR and the European Commission will begin preparing for the signature process. Once ratified, the agreement will significantly impact trade flows, investment patterns, and diplomatic relations between the two regions for years to come.
The conclusion of this historic agreement marks a new chapter in MERCOSUR’s international engagement, demonstrating the bloc’s growing influence in global economic affairs and its commitment to fostering cooperation with one of the world’s most influential economic regions.
For more details, the full Factsheet on the MERCOSUR-European Union Partnership Agreement, as well as the Joint Statement from the signatory countries and the European Commission, are available at the following links.