The economic blocs Mercosur e European Union sign the free trade agreement in Asunción, Paraguay, this Saturday (17).
The justification for choosing the location for the signature is simple: Paraguay is currently the rotating president of Mercosur. Therefore, the signing of the agreement takes place in the neighboring country.
Mercosur member states — Argentina, Brazil, Paraguay e Uruguay — lead the South American bloc in alphabetical order and in semi-annual rotation.
Brazil headed Mercosur until the end of last year, when Paraguay assumed the rotating presidency. Following this order, Uruguay will be the next to lead the block.
Another highlight that experts interviewed by CNN highlighted is that the city of Asunción, in Paraguay, was also where the Mercosur member countries signed the agreement to form the economic bloc in March 1992. However, This was just a coincidence.
The agreement was ratified on the 9th by the European Council. When voting in the Council, it was necessary that at least 15 of the 27 countries, representing at least 65% of the bloc’s population, were in favor of the treaty. Italy’s endorsement paved the way for the Council to form a majority for approval.
Without the presence of the president Luiz Inácio Lula da Silva (PT), Brazil has the representation of the Minister of Foreign Affairs, Mauro Vieiraat this Saturday’s event.
Before going to Asunción to sign the agreement, the president of the European Commission, Ursula Von der Leyenin Rio de Janeiro.
In this context, President Lula preferred to take a photo alone with Von der Leyen and António Costa, president of the European Council, rather than travel to Asunción, Paraguay, to sign the agreement, according to findings and CNN.
After 26 years of negotiations, the trade agreement will create a free trade zone of 720 million inhabitants and will add a Gross Domestic Product (GDP) of US$22 trillion. Mercosur-EU will be the largest treaty of this nature in the world.
With the signing of the agreement, it will still be necessary for the European Parliament and the Legislature of the Mercosur countries, individually, to approve the treaty for it to enter into force.
*With information from Danilo Moliterno, from CNN Brasil
