EU, South American bloc strike long-sought free trade deal

BUENOS AIRES, Argentina — South America’s Mercosur bloc and the European Union struck a free-trade deal Friday after two decades of negotiations that concluded amid global trade tensions and rising protectionism. The agreement announced by both sides came as trade talks between the EU and the United States have stalled with the Trump administration threatening to impose tariffs on all autos, a major European export to the U.S. “In the midst of international trade tensions, we are sending today a strong signal with our Mercosur partners that we stand for rules-based trade,” European Commission President Jean-Claude Juncker said following the clinching of the deal in the Belgian capital of Brussels. Argentina’s Foreign Ministry said the agreement “will mean the integration of a market of some 800 million people, nearly a fourth of the world’s gross domestic product and more than $100 billion in bilateral trade of goods and services.” The ministry said the deal also is aimed at strengthening political and cultural ties with the EU, improving access to goods, services and investments by reducing restrictions and easing access to technology and raw materials. Brazilian President Jair Bolsonaro called it one “of the most important trade agreements of all times.” The Brazilian government said the deal would boost Latin America’s largest economy by slashing tariffs for some agricultural products like orange juice, fruit and instant coffee, and expanding access via quotas for beef, ethanol and sugar.