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Historic EU-Mercosur Agreement Creates Common Market of 700 Million

Published January 9, 2026, 19:08
Historic EU-Mercosur Agreement Creates Common Market of 700 Million

European Commission President Ursula von der Leyen has described the EU Council's decision to support the EU-Mercosur agreement as historic, emphasizing that Europe is sending a strong message about growth, jobs, and protecting the interests of Europeans. The agreement creates a common market of 700 million people and is expected to offer significant opportunities for businesses. According to von der Leyen, around 60,000 European companies already export to Mercosur, with SMEs expected to benefit particularly from tariff reductions and simpler customs procedures. The agreement will also ensure better access to critical raw materials for European businesses. The Commission President assured that the concerns of farmers and the agricultural sector have been taken into account, with the agreement including strong safeguards to protect their livelihoods. In addition, import controls will be intensified to ensure compliance with the rules. The agreement includes 350 European geographical indications, more than any other EU trade agreement, and is expected to increase EU exports to Mercosur by almost €50 billion by 2040, while Mercosur exports will increase by €9 billion. Von der Leyen described the agreement as a win-win and as a platform for political dialogue and strengthening the relationship between Europe and Mercosur.

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