EU to ink long-awaited trade deal with South American bloc

"The European Union will on Saturday sign a deal 25 years in the making with the South American trade bloc Mercosur, creating one of the world's largest free trade areas at a time of growing protectionism and volatility. The long-awaited agreement comes amid the sweeping use of tariffs and trade threats by US President Donald Trump's administration, which has sent countries scrambling for new partnerships."

"Together, the EU and Mercosur account for 30 percent of global GDP and more than 700 million consumers. The treaty eliminates tariffs on more than 90 percent of bilateral trade. The deal will favor European exports of cars, wine and cheese, while making it easier for South American beef, poultry, sugar, rice, honey and soybeans to enter Europe. The treaty between the EU and Mercosur nations Argentina, Brazil, Paraguay and Uruguay was agreed in Brussels last week despite fierce opposition from European farmers."

"They fear the deal will lead to an influx of cheaper South American products due to production standards they consider less stringent. Some in South America are also wary about the impact of the treaty. In Argentina, it is estimated that there could be a loss of 200,000 jobs just from the dismantling of the local automotive industry, trade and investment researcher Luciana Ghiotto told AFP."

A trade agreement between the European Union and the Mercosur bloc after 25 years creates one of the world's largest free-trade areas. Together the EU and Mercosur represent 30 percent of global GDP and over 700 million consumers. The treaty eliminates tariffs on more than 90 percent of bilateral trade. The deal favors European exports such as cars, wine and cheese, and eases access for South American beef, poultry, sugar, rice, honey and soybeans into Europe. European farmers fear an influx of cheaper products tied to less stringent production standards. In Argentina, analysts estimate a potential loss of 200,000 automotive jobs. The signing in Asuncion will include top EU officials and representatives from Paraguay and Uruguay; Brazil's president will not attend.

Read at The Local France