South America’s Mercosur union signed a new trade deal with European Free Trade Association (EFTA) countries Iceland, Liechtenstein, Norway, and Switzerland, in a move aimed at countering destabilisation from US tariffs.
The deal follows a similar deal made by Mercosur, an organisation that includes Brazil, Argentina, Uruguay and Paraguay, with the European Union. The current agreement covers goods, services, investment, and intellectual property rights, as well as other sectors.
The hope for Mercosur countries is that the trade deal will help them demonstrate their goodwill to the EU and encourage them to adopt EU standards in crucial areas, such as food and health standards.
Commenting on the signing of the deal, made in Rio de Janeiro with ministers from all the invested parties, Brazil’s Foreign Minister Mauro Vieira said, “even in a world marked by trade tensions and rising protectionism, we remain advocates of international trade based on rules.”
Vieira also added that they want to continue talks for new or updated trade deals with other countries, including the United Arab Emirates, Mexico, and India. According to some observers, this Brazilian push for multilateral trade deals is an answer against Donald Trump’s aggressive stance on the country. The US slapped a massive 50% tariff on Brazilian exports, some of which were politically motivated over the prosecution of former Brazilian President Jair Bolsonaro, deemed close to Trump himself.
