On 28 June 2019, the European Union and Mercosur (a trade bloc comprising Argentina, Brazil, Paraguy and Uruguay) reached a political agreement for a trade agreement.
It marks the largest trade agreement concluded by the EU, and is estimated to save over €4 billion in duties on EU exports per year. The deal also includes access to public procurement contracts, protection for regional food specialties and greater freedom to provide services.
For the South American trade bloc, the principal gains is the increased access to Europe’s market for agricultural goods, in particular beef, poultry, sugar and ethanol. European business are expected to benefit from slashed duties on cars and car parts, chemicals, machinery and textiles.