Minister: Mercosur Deal Good for Thuringia - EU-Mercosur Trade Deal Finalized, Creating World’s Largest Free Trade Zone
The EU and Mercosur bloc have finalised a landmark trade deal, creating the world’s largest free trade zone. Covering over 700 million people, the agreement aims to cut tariffs and open new markets for European businesses. However, concerns remain among German farmers about competition from cheaper South American goods.
The deal will lower trade barriers between the EU and Mercosur nations—Argentina, Brazil, Paraguay, and Uruguay. European exporters, particularly in agriculture, stand to gain from improved access. Safeguard measures have been included to protect EU farmers if prices drop due to increased imports.
Protests had erupted in Thuringia and other German regions before the agreement was signed. Farmers feared being undercut by cheaper beef, cheese, and sugar from South America. To address these concerns, the final text sets strict limits on how much of these products can enter the EU market. Beyond agriculture, the pact reduces the EU’s dependence on trade with China and the US. It opens alternative routes for goods and strengthens economic ties with Latin America. Thuringia’s Economics Minister, Colette Boos-John, believes the deal will boost the region’s economy. To explore new opportunities, Thuringia plans to send a trade delegation to the Mercosur region in late 2026. Official reports confirm the trip but have not yet named specific cities or countries within the bloc.
The agreement now moves toward implementation, with safeguards in place for sensitive sectors. European exporters will gain easier access to South American markets, while Thuringia prepares for direct economic engagement. The deal’s long-term effects will depend on how trade flows adjust in the coming years.
