MercoPress. South Atlantic News Agency

Mercosur-UAE FTA 80% through

Trade links between Mercosur and the United Arab Emirates have gained relevance in the last decade

The Paraguayan Government of President Santiago Peña announced on Thursday that the ongoing negotiations with the United Arab Emirates to sign a Free Trade Agreement (FTA) with the Southern Common Market (Mercosur) were full steam ahead.

According to Asunción's Foreign Ministry, talks have progressed by 80% across 15 chapters, which include areas such as trade in goods, services, and rules of origin.

The goal is to finalize and sign the agreement by the end of the current semester. Both sides are motivated to deepen their economic ties, as a successful deal would give Mercosur access to a high-purchasing-power market and help the UAE diversify its food sources and strengthen its food security.

Foreign Minister Rubén Ramírez Lezcano held a virtual meeting with the UAE's Foreign Trade Minister Thani Al Zeyoudi to speed up the agreement, it was explained in a statement. “Paraguay, in its capacity as coordinator of these negotiations, seeks to finalize an agreement that will allow for its signing during the current semester,” the document read. “Currently, 80% progress has been made in the 15 chapters negotiated, covering issues such as trade in goods, services, and rules of origin,” it went on.

Talks began during Paraguay's Pro Tempore Presidency of Mercosur in 2024. Hence, the bloc formed by Argentina, Brazil, Paraguay, Uruguay, and Bolivia would have access to a dynamic partner in the Middle East.

According to Argentina's Rosario Stock Exchange (BCR), trade between Mercosur and the UAE has shown remarkable growth in 2024, driven by the recovery of Argentine agricultural production following the drought.

Trade links between Mercosur and the United Arab Emirates have gained relevance in the last decade. Argentina, in particular, has found in the UAE a strategic market for its exports through points such as the port of Jebel Ali in Dubai, which concentrates a large part of the trade flow to the Arab country.

Mercosur, founded in 1991, has a population of around 295 million, making it the world's fifth-largest economy.