After more than 25 years of negotiations, the European Union and the South American organization Mercosur are scheduled to sign an agreement on Saturday that will establish one of the biggest free trade zones in the world.
The agreement, which was reached in Brussels last week in spite of resistance from European farmers worried about their financial future, is ultimately scheduled to be signed in Asuncion, the capital of Paraguay.
Together, the EU and Mercosur account for almost 700 million consumers and 30% of the world’s GDP.
Over 90% of bilateral trade is free of tariffs thanks to the pact.
It is meant to favor exports of European cars, machinery, wines, and spirits to Mercosur, which will in exchange have easier access for its beef, sugar, rice, honey and soy.
The agreement has been under negotiation since 1999 between the EU and Mercosur founding members Argentina, Brazil, Uruguay, and Paraguay, which holds the bloc’s rotating presidency.
Bolivia is also a member, but was not among the bloc’s founders and will not be a party to the pact.
European Commission President Ursula von der Leyen is scheduled to travel to Rio de Janeiro on Friday with European Council head Antonio Costa, from where they will fly on to Asuncion for the signing.
In addition to host president Santiago Pena, Uruguay’s president Yamandu Orsi will also attend the signing.
The attendance of Argentina’s leader Javier Milei is not confirmed, nor that of Brazil’s Luiz Inacio Lula da Silva.
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