Brazil [Rio de Janeiro], March 6: Brazil's Senate on Wednesday ratified a deal between the Mercosur bloc and the European Union that creates one of the world's largest free trade areas. The deal involves the four founding members of the South American trade bloc, and has already been ratified by Argentina and Uruguay. Paraguay's parliament still needs to approve it. The European Commission announced last week that it would provisionally implement the mammoth deal, pending the EU top court's ruling on its legality.
The move angered France, which has led opposition to the deal and unsuccessfully attempted to block it over worries for its farmers, who fear being undercut by cheaper goods from Brazil and its neighbors.
The deal was signed in January after 25 years of tricky negotiations. It was given fresh impetus amid the sweeping use of tariffs and trade threats by US President Donald Trump's administration, which 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.
Source: Qatar Tribune
