“It is Mercosur's greatest achievement.” Javier Milei welcomes the free trade agreement with the EU

The president of Argentina, Javier Milei, emphasized on Saturday that the free trade agreement signed in Asuncion by the European Union and Mercosur is the “greatest achievement” of the Latin American integration block, which also includes Brazil, Paraguay and Uruguay, reports EFE and Agerpres agencies.

“It brings us together a fact of great political and economic importance for all members of this bloc and the whole world,” Milei said.

“It is perhaps Mercosur's greatest achievement since its creation and the result of a strategic partnership that Argentina helped push with determination during its rotating presidency last year,” he added.

Javier Milei also warned that the parliaments of the Mercosur countries, which after signing will have to confirm the implementation of the pact, will now have to ensure that no different conditions will be imposed than those established on Saturday.

That, he said, would help preserve “the spirit of what was negotiated” over the past 26 years between the two blocs of countries. This ambitious agreement will create a market of 700 million people and the largest free trade area in the world.

A historic trade agreement

The European Union and Mercosur signed a historic trade agreement on Saturday in Asuncion, Paraguay, marking the end of 25 years of negotiations between the EU and the Mercosur states and the official creation of the largest free trade area in the world, with over 700 million inhabitants, representing 30% of global GDP, reports AFP.

The agreement was negotiated since 1999 between the European Union and the Mercosur founding countries (Argentina, Brazil, Paraguay, Uruguay). Most of the European states supported it recently, despite the opposition of several countries, including France.

“We choose fair trade instead of tariffs, a long-term productive partnership instead of isolation. And above all, we intend to bring concrete and tangible benefits to our citizens and companies,” said the President of the European Commission, Ursula von der Leyen, signing the agreement.

This is a “clear signal in favor of international trade” in a context of “tensions”, declared, for his part, the president of Paraguay, Santiago Pena, whose country holds the rotating presidency of Mercosur.

This agreement eliminates customs tariffs for over 90% of trade and boosts European exports of cars, machinery, chemicals, wines and spirits. Instead, it facilitates access to the European market for meat, sugar, rice, honey and soybeans from South America.

Its signing takes place in the context in which US President Donald Trump has increased numerous customs duties in the last year.

Major protests against this treaty took place in several EU countries, while large parts of civil society in the Mercosur countries also oppose the agreement.

The treaty ran into opposition from farmers and animal breeders in several European countries, who mobilized in strong demonstrations against its signing in France, Poland, Ireland and Belgium.

The text was approved within the EU with the support of 21 of the 27 member states, but it does not automatically enter into force after signing, other stages must be completed within both blocs.

What is Mercosur?

Mercosur is the Southern Common Market, a South American trading bloc established in 1991. Its full members are Argentina, Brazil, Paraguay and Uruguay.

Venezuela joined in 2012, but its membership was suspended in 2017.

In December 2012, the Protocol of Bolivia's accession to Mercosur was signed. This protocol is currently being ratified by the parliaments of the Mercosur countries.

Together, the Mercosur countries form the 6th largest economy in the world, with a total population of 270 million inhabitants.