EU to sign free trade agreement with Mercosur in Paraguay

The European Union (EU) will sign a free trade agreement with the South American common market Mercosur today in Asuncion, Paraguay.

According to Report, the signing ceremony will be attended by European Commission President Ursula von der Leyen and President of the European Council António Costa. The agreement will be signed on behalf of the EU by European Commissioner for Trade Maroš Šefčovič.

The European Commission said the signing concludes 25 years of negotiations between the EU and Mercosur and will officially create one of the world's largest free trade areas, covering more than 700 million people.

The trade agreement with Mercosur is expected to allow around 60,000 European exporters to save approximately €4 billion annually in export duties and benefit from simplified customs procedures. By 2040, EU exports to Mercosur are projected to increase by about €50 billion, while exports in the opposite direction are expected to rise by around €9 billion.

Paraguay currently holds the rotating presidency of Mercosur. Other members of the bloc include Argentina, Brazil and Uruguay.