The LXV Summit of Presidents of Mercosur Member and Associated States, held in Montevideo under Uruguay’s presidency, served as the backdrop for a historic agreement that ended negotiations for a trade association between Mercosur and the European Union (EU). This pact will establish the world’s largest free trade zone.

The agreement was finalized following a meeting at the Mercosur headquarters attended by the Presidents of Uruguay, Luis Lacalle Pou; Argentina, Javier Milei; Brazil, Luiz Inácio Lula da Silva; and Paraguay, Santiago Peña, along with the President of the European Commission, Ursula von der Leyen.

Achieved after 25 years of negotiations, this milestone fulfills one of Uruguay’s greatest foreign policy aspirations. The agreement reaffirms the regions’ commitment to democratic values, human rights protection, and sustainable development while establishing a free trade zone encompassing approximately 800 million people.

Furthermore, the agreement will foster cooperation between the two regions in key areas such as science, technology, and innovation, including energy, industrial, and digital cooperation, as well as support for small and medium-sized enterprises (SMEs).

For Uruguay, the agreement will significantly enhance its export capacity to the EU, as approximately 70% of EU tariffs will be immediately eliminated upon its implementation. All Uruguayan exports to the EU will benefit from improved trade terms. In 2023, the EU was Uruguay’s third-largest export destination, accounting for 17% of the country’s total external trade.
2023年，The agreement grants Mercosur a quota of 99,000 tons for beef exports to the European market and 60,000 tons for rice, the latter being exempt from intra-quota tariffs. Significant benefits were also agreed for wool tops, honey, barley, and citrus sectors.

Among the new topics incorporated into the agreement are an additional cooperation protocol, a new annex on trade and sustainable development, and a mechanism for rebalancing concessions to address challenges arising from its implementation. The next steps will involve a legal review of the agreement and translating its texts to initiate the internal approval processes in each participating entity.

WCHAM extends its sincere honor to Vice President of our Chamber Mr. José Miguel Ramirez Gonzalez for his role as the official advisor to MERCOSUR. He has played a crucial role in advancing economic cooperation between South America and Europe, as well as in strengthening global trade partnerships. Source: www.gub.uy/ministerio-relaciones-exteriores/