Mercosur, EFTA Finalize Major Free Trade Pact

Mercosur, South America's largest trade bloc, has finalized a comprehensive free trade agreement with the European Free Trade Association (EFTA), comprising Switzerland, Norway, Iceland, and Liechtenstein, after nearly a decade of negotiations. The deal will remove or reduce duties on over 95% of traded goods, enhancing bilateral trade and investment opportunities for almost 300 million people and a combined GDP of over $4.3 trillion. Both blocs have agreed to clear rules of origin, international safety and quality standards, and commitments to environmental protection, particularly regarding deforestation in Brazil. The agreement also features protections for investments and regulatory flexibility specifically for Brazil. It must still be ratified by the parliaments of each member country before taking effect. This pact follows a separate, stalled trade agreement between Mercosur and the European Union, which continues to face resistance from some EU states.