Montevideo, 6 December 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 in the framework of the LXV 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 of the President of the European Commission, Ursula von der Leyen.

This understanding, which resumes and consolidates the progress made in 2019, lays the groundwork for expanding trade, investment, and cooperation opportunities between the two regions. After several years of adjustments to the originally proposed conditions, particularly regarding environmental matters, the agreement aims to establish a clear regulatory framework, reduce tariff barriers, and facilitate the flow of goods and services, benefiting 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 for the public and private sectors to work on its effective implementation.

For their part, the other leaders of the South American bloc emphasized the significance of the step taken. President Javier Milei underscored the importance of the moment, while President Lula Da Silva described it as a historic day; President Peña, although he expressed not feeling fully satisfied, noted 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 within the community context.

For the Global Mercosur 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 doors to new markets, encourages productive development, strengthens knowledge exchange, promotes technological innovation, and stimulates job creation throughout the region. The Chamber is available to its members to support this process, inform about the conditions and requirements of the new regulatory framework, and facilitate the utilization of the new opportunities arising from this historic alliance.