The German Federal Association for Economic Development and Foreign Trade (BWA) expressly welcomes today’s agreement among EU member states to conclude the free trade agreement with the Mercosur countries Brazil, Argentina, Uruguay and Paraguay as an important step for European foreign trade and for Europe’s strategic positioning in an increasingly fragmented global economy.

After more than two decades of negotiations, the path is now clear for the signing of one of the world’s largest free trade agreements. The agreement will create a free trade zone encompassing more than 700 million people and open up new opportunities for European companies in Latin America – particularly in the fields of industry, mechanical engineering, energy, agricultural technology and services.

The BWA views this agreement not only as an economic policy milestone, but also as a geopolitical one. For more than two decades, the association has actively supported economic relations with the Mercosur countries through its economic diplomacy activities. During this time, resilient networks, institutional partnerships and direct business contacts have been established, from which BWA member companies can now benefit in a particularly tangible way.

Michael Schumann, Chairman of the Board of the BWA, commented:

“The Mercosur agreement is more than a trade deal – it is a signal that Europe remains capable of cooperation, openness and rules-based partnership even in times of geopolitical tension.”

Schumann also emphasized the strategic importance of the agreement for Europe’s global role:

“Europe needs economic alliances beyond traditional power blocs. Mercosur is a partner on equal footing. This agreement strengthens Europe’s capacity to act, its diversification, and its political credibility in a multipolar world order.”

Referring to the association’s own work, Schumann added:

“Over many years, the BWA has built relationships of trust with the Mercosur countries. As a result, our member companies today benefit from established networks, market access and institutional contacts that now provide them with a genuine strategic advantage.”

The BWA underlines that the upcoming phase of ratification and implementation will be decisive. Both economic opportunities and social, environmental and agricultural interests must be taken into balanced consideration.

“Free trade is not an end in itself, but an instrument for stability, prosperity and partnership-based development. What matters now is that Europe continues on this path consistently, credibly and strategically,” Schumann concluded.