Thank you for your warm welcome to the beautiful city of Asunción.
Dear friends, today, after 25 years of work we make history. We are creating the largest free trade zone in the world, together. A shared market of 700 million people. A rules-based partnership to grow commerce and investment between our two proud regions. But it is much more than a trade agreement, it is a statement. Today we show the world that we stand for openness, for cooperation and for mutual gain in our economies, in our work on sustainability and in our geopolitical choices.
Let me elaborate on these three points. First, when it comes to mutual economic gain, we have the clearest possible win–win deal before us. The EU is already one of Mercosur's main partners for trade and investment. What this agreement does is unlock the next level of that relationship. It means more business opportunities, with companies on both sides of the Atlantic competing on an equal footing. It means the elimination of billions of euros in tariffs. It means opening up procurement markets. And it means our companies will have the predictability they need to plan, expand and invest. Such stability is priceless in these unstable times. EU exports to Mercosur are expected to grow by up to EUR 50 billion. At the same time, Mercosur exports could increase by up to EUR 9 billion. That means real value, real growth, real jobs. These are not just trade figures, they are potential success stories for companies of all sizes, with the power to transform the life of a village or a community for the better. With our agreement, we can integrate our industrial value chains to make them stronger, to attract more investment and to create quality jobs. This is how we grow together, on both sides of the Atlantic.
My second point: Let me celebrate how this deal will drive our shared ambitions on sustainability. We have agreed on a truly modern, dynamic and legally binding set of commitments. A pledge to work towards climate neutrality by 2050. A clear contribution for trade to the green transition. A shared commitment to sustainable development and protection of labour rights. This is what our citizens expect from us, and this is what we have delivered.
My third point: With this deal we are making a geopolitical pledge to each other. The bond between our regions is already among the strongest on the planet. Based on shared values, respect for rules and trust. Now, we are signing on the dotted line to say: We are in it for the long haul. Ours will be a long-term partnership. A shared platform for political dialogue on the great questions of our time: Sustainability, equality, but also peace and security. This matters more than ever in today's world and the message will resonate everywhere.
I would like to direct my final point towards my fellow Europeans, all 450 million of them: This agreement is good for Europe – and for every Member State. Today, 60,000 European companies export to Mercosur, half of them are small and medium-sized companies. They will benefit from lower tariffs. They will save around EUR 4 billion every year in export duties. They will benefit from simpler customs procedures, as well as better access to critical raw materials. And to our farmers: We have heard your concerns, and we have acted on them. This agreement contains robust safeguards to protect your livelihoods, and our sensitive agricultural sectors. It brings substantial economic opportunities for many EU agri-food exporters. It safeguards 350 European geographical indications. More than in any other EU trade deal.
In conclusion, dear friends, let me once again thank all of you for getting us this far. Now, we must invest our time and energy into finalising the deal in both our regions. So that our citizens and companies can start to feel its benefits without delay. Our immediate task is to explain its benefits clearly. Leaving no room for doubt that this is a deal all sectors of our economies can support, with confidence. We must prepare the ground.
But today, dear Santiago, we celebrate. Two regions, two sides of the Atlantic, coming together to form a great partnership, rooted in shared values, mutual respect, and a common ambition for the future. And I cannot wait to cheer with you over a glass of ice cold Tereré.
