Brasília – Mercosur and the European Union have entered into a free trade agreement this Friday (28). The Brazilian Ministry of Economy estimates the deal could add USD 87.5 billion to Brazil’s Gross Domestic Product (GDP) in 15 years’ time. The Mercosur comprises Brazil, Argentina, Uruguay and Paraguay.
According to the Ministry, as much as USD 125 billion could be added to the GDP, in case non-tariff barrier reduction and expected productivity hikes are factored in. Investments in Brazil are expected to pick up by USD 113 billion, and exports from Brazil to the EU could increase by nearly USD 100 billion by 2035.
As per a statement from Brazil’s federal government, the agreement is a watershed in relations between the Mercosur and the EU – which account for a combined 25% of global GDP and are home to 780 million people between them. “In a time of tension and uncertainty in international trade, the agreement’s conclusion of highlights the commitment of these two blocs to economic openness and the enhancement of competitiveness,” the statement reads.
Talks for the deal, which had begun in 1999, came to an end after two days of ministerial meetings in Brussels. The Brazilian delegation (pictured) included the ministers of Foreign Affairs, Ernesto Araújo, and Agriculture, Livestock and Supply, Tereza Cristina; and the Ministry of Economy’s special secretary for Foreign Trade and International Affairs, Marcos Troyjo.
Translated by Gabriel Pomerancblum
