EU reaches historic free trade agreement with Mercosur

Representatives of the European Union, in the presence of the Presidents of Argentina, Brazil, Paraguay and Uruguay, announce in Montevideo the conclusion of negotiations between the European Union and the South American Community Mercosur. After more than two decades, an agreement has been reached on the creation of one of the world's largest free trade areas, covering up to 700 million consumers, which will significantly help export-oriented countries, including Slovakia. The importance of this mutual cooperation is therefore also recognized by the government representatives, Prime Minister Robert Fico and Deputy Prime Minister and Minister of Economy Denisa Saková, who will leave this Sunday (8th of December 2024) for a working visit to Brazil. This will be the first ever visit of a Slovak Prime Minister to South America.

"Slovakia has an open economy and we are constantly working to open more and more doors for entrepreneurs. I welcome the agreement with Mercosur as it can be very beneficial for us in the future, especially for trade in the automotive sector. Successful negotiations will mean more jobs, more business opportunities and lower prices. I look forward to visiting Brazil on Sunday with the Prime Minister and the largest ever business mission and to supporting Slovak companies in their search for new opportunities through bilateral negotiations," said Minister of Economy Denisa Sakova.

The agreement with Mercosur, already the European Union's second largest economic partner, will reflect commitments to the Paris Agreement on climate change, deforestation and the protection of the Amazon rainforest. It will also include strong safeguards not only for farmers, but also for food health standards and European animal welfare standards, saving the EU up to €4 billion a year.

"Currently, 244 Slovak companies export a wide range of goods and services from Slovakia to Mercosur countries. Of these, 79% are small and medium-sized enterprises. The agreement will help support around 5,000 jobs in Slovakia, and this number can grow. We will also benefit economically from the gradual elimination of existing tariffs in key export sectors," added Minister Denisa Saková.

Mercosur (Southern Common Market) is a regional integration process founded by Argentina, Brazil, Paraguay and Uruguay, later joined by Venezuela and Bolivia (Bolivia is still in the process of joining). The main objective of Mercosur is to create a common space to promote trade and investment opportunities through the integration of national economies into the international free market.

Press department MH SR