May 1, 2026, 6:25 a.mMay 1, 2026, 6:25 a.m
EU Commission President Ursula von der Leyen. (archive image)Image: keystone
The EU and the South American Mercosur states Brazil, Argentina, Uruguay and Paraguay have been forming a huge new free trade zone since Friday. At midnight, an agreement negotiated for this purpose came into force provisionally.
According to the EU Commission, this creates a market with around 720 million people. It is intended to stimulate the exchange of goods and services by gradually reducing trade barriers and tariffs.
“With the start of the EU-Mercosur agreement on May 1st, trade with South America is becoming significantly more important for German companies – although it currently only accounts for around one percent of total German foreign trade,” commented the German Chamber of Commerce and Industry (DIHK) on the start of the free trade zone. A survey shows that 44 percent of all internationally active companies expected the agreement to have a noticeable impact. “This is a strong signal,” said head of foreign trade Volker Treier. (sda/dpa)