FX.co ★ EU Set to Proceed with South American Trade Deal

The European Commission is set to take a significant step forward by advancing its much-anticipated trade agreement with Mercosur, which includes Brazil, Argentina, Paraguay, and Uruguay, on Wednesday. This marks the beginning of the ratification process by the European Union's 27 member states and its Parliament. If approved, this would represent the EU's most expansive free-trade agreement to date, encompassing elements such as tariffs and intellectual property rights. Alongside this, a modernized trade agreement with Mexico is also anticipated this week. Despite the political settlement of the Mercosur agreement last December, it faces resistance from countries including France, due to concerns over potential threats to domestic agriculture through increased imports of beef and poultry. This initiative comes at a time of tense relations between the EU and the U.S., following tariffs imposed by President Trump. The initial U.S.-EU trade deal introduces a 15% tariff on many EU imports while simultaneously reducing tariffs on American products.