EU tries to get closer to South America with trade deal

Published On Dec 6, 2024, 9:13 AM

The European Union has signed a trade agreement with Argentina, Brazil, Paraguay, and Uruguay, potentially lowering tariffs and simplifying customs procedures for companies in both regions. This deal aims to boost exports, particularly for European cars and pharmaceutical industries, and improve access to crucial raw materials like lithium and nickel, vital for electric vehicle batteries. Despite concerns from some EU member states about competition with South American farmers, leaders hope this trade deal will significantly enhance economic ties between the blocs, impacting about 700 million consumers and 20% of global economic output.