Brazilian President Luiz Inacio Lula da Silva has signed a decree on the entry into force of the free trade agreement between the South American Common Market (MERCOSUR) and the European Union (EU). This document is an important step towards creating one of the world’s largest trading areas. The agreement, signed in January of this year after 26 years of negotiations and ratified by the Brazilian Congress, will enter into force on a phased basis starting from May 1.
Speaking at the signing ceremony, Lula da Silva stressed that this trade agreement is the result of long-term negotiations and is of great importance in strengthening multilateral relations. The agreement provides for the gradual reduction or complete elimination of customs duties on more than 90 percent of trade between the two blocs. The document will allow MERCOSUR member countries (Brazil, Argentina, Paraguay, Uruguay, Bolivia) to unite with the European Union, creating a common market of 720 million people. In the initial phase, the agreement will focus on trade issues, including reducing tariffs, public procurement and simplifying trade procedures.
