Montevideo, December 6, 2024 – After 25 years of negotiations, Mercosur and the European Union (EU) today reached an agreement to establish a free trade area between both blocs. The announcement took place during the LXV Mercosur Summit, held in Montevideo, Uruguay, with the presence of the Presidents of Argentina, Javier Milei; Brazil, Luiz Inácio Lula da Silva; Uruguay, Luis Lacalle Pou; Paraguay, Santiago Peña; and the President of the European Commission, Ursula von der Leyen.

This agreement, which builds upon and consolidates the progress made in 2019, lays the foundation for expanding trade, investment, and cooperation opportunities between the two regions. After several years of adjustments to the originally proposed conditions, especially regarding environmental issues, the agreement seeks to establish a clear regulatory framework, reduce tariff barriers, and facilitate the flow of goods and services, benefiting both producers and consumers.

During the presentation, host President Luis Lacalle Pou and European Commission President Ursula von der Leyen highlighted the historic nature and economic potential of the agreement. They also acknowledged that this joint effort to reach a consensus is a starting point, not a final destination: it will now be up to the respective Parliaments and Congresses to ratify the agreement, while both public and private sectors will need to work towards its effective implementation.

Meanwhile, the other leaders of the South American bloc emphasized the significance of this step. President Javier Milei underlined the importance of the moment, while President Lula da Silva described it as a historic day. President Peña, although expressing some reservations, acknowledged that the agreement brings hope and new opportunities. Von der Leyen, for her part, stressed the EU’s commitment to environmental sustainability and safeguards for European producers, ensuring the agreement’s acceptance within the European community.

For the Mercosur and Americas Chamber of Commerce, this agreement represents an unprecedented opportunity for its members. The move toward greater free trade between Mercosur and the European Union opens the door to new markets, encourages productive development, strengthens knowledge exchange, promotes technological innovation, and stimulates job creation throughout the region.

The Chamber stands ready to support its members in navigating this transition, providing information on the new regulatory framework and facilitating access to the new opportunities emerging from this historic partnership.