Asunceón – Saba:
The European Union and the South American Common Market bloc Mercosur signed a free trade agreement on Saturday evening after more than 25 years of neobtainediations, during a ceremony held in Paraguay.
Under the agreement, the two parties are creating one of the world’s largest free trade areas, encompassing approximately 718 million people and a combined GDP of around $22.4 trillion, according to Russia Today.
Despite the agreement’s mutual benefits, most notably the elimination of tariffs and the granting of preferential tariffs, it has sparked widespread objections in Europe, where farmers have organized large protests and do not intconclude to halt them.
Around a thousand farmers are scheduled to gather in front of the European Parliament on January 20 to demand measures that protect the competitiveness and sustainability of the agricultural sector. European farmers fear an influx of low-cost agricultural imports from countries with less stringent health and environmental standards, which they state could lead to a decline in sales of European products due to “unfair competition.”
Conversely, South American producers have expressed concerns that the agreement will limit their role to raw material suppliers, building it difficult for them to compete with European manufactured goods and advanced technologies. They warn of the risks of factory closures and layoffs.
The Mercosur bloc comprises Argentina, Uruguay, Paraguay, Brazil, and Bolivia. It was established in 1991 following the signing of an agreement creating a customs union and a common market in Asunción, Paraguay.
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