The South American trade bloc Mercosur and the European Free Trade Association (EFTA) officially shook hands on a major free trade agreement, ministers announced on Wednesday, July 2nd, during a Mercosur summit in Buenos Aires. EFTA comprises four European countries that are not EU members: Norway, Iceland, Switzerland, and Liechtenstein
According to a joint statement released by the blocs, “Both parties will benefit from improved market access for more than 97% of their exports, which will increase bilateral trade and benefit companies and citizens.”
The EFTA deal comes as Mercosur continues to work toward finalizing a long-delayed trade agreement with the European Union, initially agreed upon in principle in December last year. That accord still awaits translation and ratification by all 27 EU member states and has met resistance from countries like France and farmers concerned about competing with low-quality foods cheaply produced without the restraints of EU regulations.
“The EFTA States are committed to ratifying the EFTA-Mercosur Free Trade Agreement following the signing and are continuing their respective internal procedures in accordance with national requirements,” an EFTA spokesperson said.
Talks between the two groups began years ago, in 2017. Now, the agreement still needs to undergo legal review and receive parliamentary approval in each participating country. However, both parties emphasized their intent to sign in the coming months.
