EU and Mercosur finalize major trade agreement with climate commitments and tariff reductions

The European Union and Mercosur have finalized a free trade agreement, marking the EU's largest deal by population and tariff reductions. The agreement could save up to 4 billion euros annually, but it still needs approval from all 27 EU member states. Key changes from the initial 2019 agreement include commitments to the Paris climate accord and measures to prevent deforestation by 2030. The EU will eliminate duties on industrial goods over ten years, while Mercosur will reduce tariffs on over 90% of EU exports, including cars and machinery. The deal also includes provisions for agricultural imports, with the EU phasing in a beef quota and Mercosur reducing tariffs on EU wines and other products. It aims to enhance trade in services and improve access to government procurement for Mercosur countries.