The European Union (EU) has recently been in discussions with South American countries to form a trade agreement. This agreement would create the largest free trade zone in the world, covering a population of 800 million people and an economic output of approximately $19 trillion. The EU hopes that this trade deal would offset the effects of Brexit and promote economic growth for all parties involved.

Benefits for both regions

The EU-South America trade agreement would benefit both regions. The EU would gain access to a market of 420 million people in South America, offering significant opportunities for EU exporters across a range of sectors. In return, South American countries would benefit from improved access to the EU`s 500 million consumers. This would boost economic growth in the region, increase trade and investment flows and create jobs.

The trade deal would aim to reduce both tariff and non-tariff barriers to trade. Tariffs are taxes placed on imported goods, while non-tariff barriers include regulations, standards, and procedures that can make it difficult to trade across borders. Reducing these barriers will enable businesses to expand their markets, cut costs and increase competitiveness.

Environmental and social issues

The EU-South America trade agreement would also address environmental and social issues, such as climate change, workers` rights, and sustainable development. This would ensure that both regions benefit from the agreement in a responsible and sustainable way, without harming the environment or workers` rights.

The EU is committed to the principles of the Paris Agreement on Climate Change and will expect South American countries to meet the same standards. This will reduce the risk of environmental degradation and encourage sustainable practices, such as renewable energy and resource efficiency.

Workers` rights will also be protected under the trade agreement. The EU will expect South American countries to comply with International Labor Organization (ILO) conventions, such as the prohibition of child labor and forced labor. This will ensure that workers are treated fairly and have decent working conditions.

Conclusion

The EU-South America trade agreement has the potential to create significant economic benefits for both regions. By reducing barriers to trade and promoting sustainable development and workers` rights, the agreement will enable businesses to expand their markets and create jobs. This trade deal would be a significant achievement for both regions, demonstrating their commitment to a sustainable and responsible approach to economic growth.