Uruguay approves EU-Mercosur Free Trade Agreement

State TV Reporter learned that on the 26th local time, the Uruguayan Chamber of Deputies approved the free trade agreement between the Southern Common Market (Mercosur) and the European Union with 91 votes in favor and 2 against, becoming the first country in Mercosur to have this trade agreement ratified by parliament.

The EU-Mercosur free trade agreement was signed on January 17 this year and will take effect after approval by the European Parliament and other Mercosur member countries (Argentina, Brazil, and Paraguay). Currently, Brazil’s Chamber of Deputies approved the agreement on the 25th and has submitted it to the Senate, with approval expected in the coming days; Argentina’s Chamber of Deputies approved it on February 13, awaiting Senate review and approval.

However, the agreement has faced protests in several European countries. On February 10, the European Parliament approved safeguard measures, allowing the temporary suspension of tariff preferences for imports from Argentina, Brazil, Paraguay, and Uruguay if import growth causes “serious damage” to European producers.

According to Mercosur data, the agreement will integrate a market of 800 million people, with a total GDP equivalent to one-quarter of the global GDP, and a total trade volume of about $100 billion. It will also open new opportunities for Mercosur’s international integration and strengthen channels for its export products to enter the European market. The EU will eliminate tariffs on 92% of Mercosur exports, involving approximately $61 billion. Additionally, it will provide preferential access to another 7.5% of goods (about $4.7 billion), benefiting nearly all of Mercosur’s exports to the EU.

(Source: CCTV News)