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Story summary
- The EU and Mercosur provisionally applied their free-trade agreement on May 1, the bloc’s biggest tariff-cutting deal in 25 years.
- Supporters argue the pact is intended to offset losses from U.S. President Donald Trump’s tariffs.
- Critics warn the deal will increase cheap beef and sugar imports, threatening EU farmers.
- Economists project the agreement will raise EU GDP by 0.05 % by 2040, while Chinese firms retain a $1.2 trillion trade surplus in 2025.
