Late last week, the European Union reached an agreement with Brazil, Argentina, and the three other nations that make up the Mercosur trade alliance. Even as France says it will push the controversial trade deal off course, the agreement ends 25 years’ worth of negotiations. The deal will create one of the world’s largest free trade zones if it gets approved.
The free trade zone would cover a market of 780 million people who represent nearly a quarter of the global gross domestic product. However, critics in France, the Netherlands, and other countries with big dairy and beef industries say the pact would subject their farmers to unfair competition and lead to environmental damage.
Proponents say the agreement would save businesses approximately $4.26 billion in duties each year, cut red tape delays, and remove tariffs on a large variety of products.
Uruguay officials hail the agreement as a truly historic milestone.