Mercosur-EU Trade Deal May Be Signed In Second Half Of Year - Paraguayan President

BUENOS AIRES (Pakistan Point News / Sputnik - 02nd July, 2020) The trade agreement between the Mercosur club of Latin American economies and the European Union, which was reached a year ago, may be signed in the second half of 2020, Paraguayan President Mario Abdo Benitez said on Thursday.

"We reached an accord on important technical aspects of the Mercosur-EU agreement with the intention to sign it in the second half of the year. We want Mercosur to effectively serve its goals and work to improve our citizens' quality of life," Abdo Benitez said at a meeting of the Mercosur bloc's heads of state, as broadcast on Twitter.

Last June, the EU and Mercosur agreed on the terms of the trade deal that they negotiated over for almost 20 years. The accord is designed to enhance political and economic cooperation and boost sustainable growth. Once ratified by all individual member states and in force, the deal will eliminate the majority of tariffs between the two blocs by establishing a free trade area.

However, some EU states are hesitant about the deal's ratification over what they consider Brazil's inaction on the destruction of the Amazon rainforest and its non-compliance with the Paris climate agreement.

The accord is also expected to increase cooperation between the blocs in such areas as migration, digital economy, research and education, human rights, including the rights of indigenous people, corporate and social responsibility, environmental protection, ocean governance, as well as the fight against terrorism, money laundering and cybercrime.

Mercosur was established in 1991 to encompass Argentina, Brazil, Paraguay and Uruguay into a common market. Venezuela's full membership was suspended in December 2016.