The parliaments of Uruguay and Argentina on Thursday officially approved a free trade agreement with the EU, becoming the first countries in the South American bloc to complete this stage. The creation of one of the world's largest free trade zones will cover over 700 million people and a quarter of the world's gross domestic product, concluding a negotiation process that lasted a quarter of a century. This was reported by AP, writes UNN.
Details
The lower house of the Uruguayan parliament adopted the document by an overwhelming majority of votes – 91 to 2, which was a logical continuation of the Senate's unanimous decision.
Congressman Juan Martín Rodríguez emphasized that the country is no longer willing to wait a second after 25 years of waiting, sending a clear signal to international partners.
The Argentine Senate also ratified the agreement on the same day with 69 votes to 3, despite attempts by the ruling party to speed up the session to outpace Uruguay and become the first country to complete the procedure.
Consequences for the global market and further steps of the bloc
The ratification of the agreement by Uruguay and Argentina paves the way for its provisional application by the European Union, which is strategically important amid global trade tensions.
Brazil and Paraguay are expected to join the ratification in the coming weeks, completing the formation of a single economic space. The implementation of the agreement will significantly reduce customs tariffs and simplify access for South American agricultural goods to the European market in exchange for industrial products from the EU.