Mercosur and EU Start a New Trade Deal
Introduction
Mercosur and the European Union finished talking for 25 years. They will start their trade agreement on May 1, 2025. Brazilian Vice President Geraldo Alckmin said the deal is good because many countries are now making trade harder.
Main Body
The two groups signed the deal on January 17, 2025. The deal joins a market of about $22 trillion and 720 million people. In December 2024, farmers and people who care about the environment stopped the deal. Then EU lawmakers took the deal to court. The European Commission decided to start the deal now, but it will stop if the court says no. Alckmin said if the deal did not happen, Mercosur would lose business to other groups. He said Brazilian exports to the EU will grow 13% every year. European Commission President Ursula von der Leyen thanked Brazilian President Lula for helping the deal. Brazil is the biggest economy in Mercosur. Its GDP is more than $2.3 trillion in 2025. Brazil is also talking about trade with the United Arab Emirates and Canada. In the past, Alckmin and Lula were enemies about this deal. But in 2022, they worked together to beat President Jair Bolsonaro. Lula won the election and pushed the trade talks. This happened after US President Donald Trump put taxes on goods from many countries, including Brazil. French President Emmanuel Macron does not like the deal. He wants rules to protect EU farmers. He wants stricter rules on pesticides for Mercosur countries and more checks on imports. Alckmin said Mercosur countries have good environmental rules. He said Brazil cut deforestation by 50%. He said either group can ask for new rules if too many goods come in. The full deal may take up to 12 years. Alckmin said this time helps Mercosur companies make better products. Fruit, beef, and sugar will be the first to benefit.
Conclusion
This trade deal is important because many countries are making trade harder. The deal will start now, but it needs a final yes from the European Court. The deal will grow slowly over 10 years.