European Commission unveils historic trade agreements to boost exports
- The European Commission proposed trade agreements with Mercosur countries and Mexico to enhance export opportunities.
- The agreements aim to reduce tariffs significantly on a range of products, benefiting European businesses.
- These partnerships are expected to contribute to economic growth and job creation across Europe.
On September 4, 2025, the European Commission introduced two significant trade agreements aimed at fostering economic growth. The EU-Mercosur Partnership Agreement involves Argentina, Brazil, Paraguay, and Uruguay, creating the largest free trade area globally. This agreement will increase annual exports by up to 39% by reducing prohibitive tariffs on key EU industrial products and agri-food exports. Specific tariffs will be lowered on items such as cars, pharmaceuticals, wine, and olive oil, alongside protective measures for EU agricultural sectors. Simultaneously, the Modernized EU-Mexico Global Agreement was presented, intended to enhance trade benefits for European agricultural exporters by eliminating remaining tariffs on EU goods. This agreement is particularly advantageous for products like cheese, poultry, pasta, and wine. With current barriers reaching up to 100%, the modernized pact is expected to streamline trade processes and protect geographical indications for iconic European products, involving 568 items. Both trade agreements are positioned as responses to increasing global geopolitical instability, with the aim of reinforcing the EU's trade position and competitiveness. Kaja Kallas, the High Representative for Foreign Affairs, along with Maroš Šefčovič, the European Commissioner for Trade, stressed the importance of these agreements in bolstering mutual trust between the EU and its partners. They highlight that these partnerships not only provide economic benefits but also aim to support jobs across Europe and promote EU interests and values. Before these agreements can take effect, they must undergo approval from the European Parliament and be ratified by member states. The proposals presented also include legal acts designed to protect sensitive sectors, ensuring a structured approach as Europe engages in crucial economic partnerships. Overall, these agreements reflect the European Commission's strategy to enhance international trade relations and secure export opportunities worth billions of euros.