European business associations have welcomed the signing of the EU–Mercosur Trade Agreement, describing it as a historic step that creates the world’s largest trading bloc and sends a strong signal of the EU’s commitment to open, rules-based global trade. By ILM.

Representing more than 28 associations across a wide range of sectors, European business leaders said the agreement comes at a crucial moment of global economic uncertainty and will act as a significant growth driver for the EU.

The deal opens access to more than 270 million consumers by eliminating trade barriers and removing tariffs on over 90% of EU exports. Business groups said this will give European companies a major boost to export, invest and expand, while also helping to diversify supply chains and secure access to essential products and raw materials from Mercosur countries.

According to calculations by the European Commission’s DG Trade, the agreement is expected to add €77.6 billion to EU GDP by 2040 and drive a 39% increase in EU exports to Mercosur.

With the agreement now signed, attention turns to ratification. Business associations urged the European Parliament to move swiftly to give its consent, arguing that rapid approval is essential to unlock the economic benefits of the deal.

After more than 25 years of negotiations, they said Europe is finally within reach of the finish line and cannot afford further delays in activating what they see as a key engine of future growth and prosperity.