1 month ago
28
You have a preview view of this article while we are checking your access. When we have confirmed access, the full article content will load.
The European Union and five South American countries have reached an agreement to establish one of the largest trade zones in the world.
Dec. 6, 2024Updated 9:14 a.m. ET
The European Union reached a major trade deal on Friday with five South American countries, concluding a long-delayed negotiation that took on new urgency as President-elect Donald J. Trump threatens to impose tariffs on some of the world’s largest economies.
The deal, between the European Union and members of Mercosur — a bloc that includes Argentina, Bolivia, Brazil, Paraguay and Uruguay — would establish one of the largest trade zones in the world, and would be the European Union’s biggest trade agreement ever.
With European leaders preparing for the possibility that Mr. Trump’s return to office will lead to a more fragmented global economy, the deal is a significant victory for proponents of free trade, linking markets with 780 million people. But it could fuel frustration within the European bloc, with France opposed to the agreement over concerns about the possible dumping of cheap agricultural imports in Europe, which could hurt competition.
What’s in the trade deal?
If ratified, the agreement would lift tariffs on products including meat, cars, wine and chocolate. A date for the ratification vote has not yet been set. France has strongly opposed the agreement, but Paris does not appear to have persuaded enough other European countries to vote against it.
With Mr. Trump’s election, Europe is facing the threat of high tariffs on exports to the United States, its biggest trading partner, and increased competition from China. Mr. Trump has suggested that he would impose tariffs of 10 to 20 percent on products around the world and tariffs of 60 percent or more on Chinese goods.
