The EU and a South American trade bloc reach a giant trade deal after 25 years of talks

By GUILLERMO GARAT and ISABEL DEBRE

MONTEVIDEO, Uruguay (AP) — The European Union reached a blockbuster free trade agreement Friday with Brazil, Argentina and the three other South American nations in the Mercosur trade alliance, capping a quarter-century of on-off negotiations even as France vowed to derail the contentious accord.

Provided it is ratified, the accord would create one of the world’s largest free trade zones, covering a market of 780 million people that represents nearly a quarter of global gross domestic product.

The accord’s proponents in Brussels say it would save businesses some $4.26 billion in duties each year, slashing red tape and removing tariffs on products like Italian wine, Argentine steak, Brazilian oranges and German Volkswagens.

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“I know that strong winds are blowing in the opposite direction, toward isolation and fragmentation, but this agreement is our clear response,” von der Leyen said, an apparent reference to U.S. President-elect Donald Trump’s vows to protect American workers and goods.

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https://apnews.com/article/uruguay-mercosur-european-union-trade-agreement-free-trade-south-america-44ca8d0eef524b84014ad266c286f8fe