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| EU and Mercosur agree huge trade deal after 20-year talks | EU and Mercosur agree huge trade deal after 20-year talks |
| (32 minutes later) | |
| The EU and South American economic bloc Mercosur have clinched a huge trade deal after 20 years of negotiations. | The EU and South American economic bloc Mercosur have clinched a huge trade deal after 20 years of negotiations. |
| EU Commission chief Jean-Claude Juncker said it was the EU's biggest deal to date and, at a time of trade tensions between the US and China, showed that "we stand for rules-based trade". | EU Commission chief Jean-Claude Juncker said it was the EU's biggest deal to date and, at a time of trade tensions between the US and China, showed that "we stand for rules-based trade". |
| Brazil's President Jair Bolsonaro said it was "historic" and "one of the most important trade deals of all time". | Brazil's President Jair Bolsonaro said it was "historic" and "one of the most important trade deals of all time". |
| Mercosur consists of Argentina, Brazil, Uruguay and Paraguay. | Mercosur consists of Argentina, Brazil, Uruguay and Paraguay. |
| Venezuela is also a member but it was suspended in 2016 for failing to meet the group's basic standards. | Venezuela is also a member but it was suspended in 2016 for failing to meet the group's basic standards. |
| The deal aims to cut or remove trade tariffs, making imported products cheaper for consumers while also boosting exports for companies on both sides. | The deal aims to cut or remove trade tariffs, making imported products cheaper for consumers while also boosting exports for companies on both sides. |
| It is set to create a market for goods and services covering nearly 800 million consumers, making it the largest in the world in terms of population. | |
| The two parties began negotiating in 1999 but talks accelerated after US President Donald Trump's election in 2016. As a result EU-US talks were frozen. | |
| The EU has also concluded trade agreements with Canada, Mexico and Japan since Mr Trump's election. | The EU has also concluded trade agreements with Canada, Mexico and Japan since Mr Trump's election. |
| However, the EU deal with Mercosur could see savings on tariffs that are four times as big as those made in the Japan deal, EU trade commissioner Cecilia Malmstrom said. | However, the EU deal with Mercosur could see savings on tariffs that are four times as big as those made in the Japan deal, EU trade commissioner Cecilia Malmstrom said. |
| Narrow window to close the deal | |
| Analysis by Daniel Gallas, South America business correspondent | |
| It is no small feat to close such a complicated deal at a time when free trade is under attack globally. Protectionism is clearly on the rise - with Brexit and the trade war between China and the US. | |
| The deal could significantly change the way Europeans do business in countries like Brazil - which has one of the world's most closed economies. High tariffs have historically kept European competitors at a disadvantage against national industries. | |
| Similarly, South American farmers will finally gain access to European food markets. | |
| Europeans and South Americans had a narrow window to close this deal, as elections in Argentina later this year could potentially shift the mood against free trade, as is happening in other parts of the world. | |
| What is the reaction? | What is the reaction? |
| Ms Malmstrom said negotiations had begun 20 years ago to the day. | Ms Malmstrom said negotiations had begun 20 years ago to the day. |
| "They have been long negotiations - tough, difficult, and at least I have said many times 'we are almost there'. Now we are. This is a landmark agreement," Ms Malmstrom said. | "They have been long negotiations - tough, difficult, and at least I have said many times 'we are almost there'. Now we are. This is a landmark agreement," Ms Malmstrom said. |
| She said it sent a strong message that both the EU and Mercosur were in favour of "open, sustainable and rules-based trade". | She said it sent a strong message that both the EU and Mercosur were in favour of "open, sustainable and rules-based trade". |
| Meanwhile Argentine President Mauricio Macri tweeted the tearful audio message in which his Foreign Minister Jorge Faurie told him: "In your presidency we have successfully concluded 20 years of negotiations." | Meanwhile Argentine President Mauricio Macri tweeted the tearful audio message in which his Foreign Minister Jorge Faurie told him: "In your presidency we have successfully concluded 20 years of negotiations." |
| Speaking to reporters, Mr Faurie said Mercosur had hitherto been a "very closed commercial space" but that the deal with the EU sent a "very clear message about where we are going". | Speaking to reporters, Mr Faurie said Mercosur had hitherto been a "very closed commercial space" but that the deal with the EU sent a "very clear message about where we are going". |
| Argentina's Secretary of International Relations Horacio Reyser said it would boost GDP, create jobs and attract investment. | |
| He tweeted a video of the moment the deal was confirmed. | He tweeted a video of the moment the deal was confirmed. |
| However, the environmental group Greenpeace said the deal - and the likely growth in demand for Latin American agricultural products - amounted to a "disaster for the environment on both sides of the Atlantic". | However, the environmental group Greenpeace said the deal - and the likely growth in demand for Latin American agricultural products - amounted to a "disaster for the environment on both sides of the Atlantic". |
| Ahead of the deal's announcement, it said the agreement would lead to more destruction of the Amazon rainforest and attacks on indigenous peoples. | Ahead of the deal's announcement, it said the agreement would lead to more destruction of the Amazon rainforest and attacks on indigenous peoples. |
| Cattle farming is already the biggest driver of deforestation, Greenpeace says. | Cattle farming is already the biggest driver of deforestation, Greenpeace says. |
| Critics say Mr Bolsonaro's plans to weaken environmental protections also threaten the Amazon. | Critics say Mr Bolsonaro's plans to weaken environmental protections also threaten the Amazon. |
| What's in the deal? | What's in the deal? |
| The EU is already Mercosur's biggest trade and investment partner and its second largest for trade in goods, Reuters reports. | The EU is already Mercosur's biggest trade and investment partner and its second largest for trade in goods, Reuters reports. |
| The EU wants to increase access for firms that make industrial products and cars - which are currently subject to tariffs of up to 35% - and also enable them to compete for public contracts in Mercosur countries. | The EU wants to increase access for firms that make industrial products and cars - which are currently subject to tariffs of up to 35% - and also enable them to compete for public contracts in Mercosur countries. |
| Mercosur wants to increase exports of beef, sugar, poultry and other farm products. | Mercosur wants to increase exports of beef, sugar, poultry and other farm products. |
| In a statement, Brazil said the deal included eliminating tariffs on products such as orange juice, instant coffee and fruit. | In a statement, Brazil said the deal included eliminating tariffs on products such as orange juice, instant coffee and fruit. |
| Meanwhile, producers of other products such as meat, sugar and ethanol would have greater access to the EU market through quotas, the statement said. | Meanwhile, producers of other products such as meat, sugar and ethanol would have greater access to the EU market through quotas, the statement said. |
| How other complex deals compare | How other complex deals compare |