After twenty years of negotiations, Mercosur (Argentina, Brazil, Uruguay, and Paraguay) and the European Union have concluded a free trade agreement between the two blocs. The new pact between the two blocs will bring together economies that together account for around 25% of world GDP and a market of 780 million people.
The free trade agreement could represent an increase of US $ 87.5 billion of the Brazilian GDP in 15 years. It covers both tariff and regulatory issues such as services, government procurement, trade facilitation, technical barriers, sanitary and phytosanitary measures, and intellectual property.
Paradoxically, the agreement is a blow to politicians opposed to globalization such as the current Brazilian chancellor Ernesto Araújo, who has already said he would fight to reverse globalization.
However, both Araújo and President Jair Bolsonaro celebrated the agreement reached today between Mercosur and the European Union.
It is very strange, to say the least, that a government in which the Minister of Economy said publicly that Mercosur would not be a priority in the new government, and the chancellor openly criticizes what he calls "globalism" and says that Europe is a "culturally empty space" is now celebrating this deal.
It is very strange, to say the least, that a government in which the Minister of Economy said publicly that Mercosur would not be a priority in the new government, and the chancellor openly criticizes what he calls "globalism" and says that Europe is a "culturally empty space" is now celebrating this deal.
