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Economy Free trade agreements between the EU and other countries are rising

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President Trump's tariffs are forcing a re-organization of world trade away from the United States. More and more countries are signing free trade agreements between each others. In 2 days the EU is due to sign a free trade agreement with Mercosur countries (Argentina, Bolivia, Brazil, Paraguay, Uruguay), meaning that the European Union will now have free trade agreements with virtually all countries on the American continent except the United States and Cuba (and Venezuela while it is being suspended from Mercosur).

Partner countryAgreementEU tariff lines duty-free (status)
Norway & Icelandpart of the European Economic Area100% (Industrial goods), ~80% of total imports duty-free (non-competing goods)
United KingdomTrade and Cooperation Agreement (TCA)100% (Zero tariffs on all qualifying goods)
Switzerland"Common Understanding"100% (Industrial goods), ~50% of Swiss imports duty-free (agricultural goods)
UkraineDCFTA (Deep and Comprehensive Free Trade Area)Tariffs are widely reduced/removed with phased schedules; DCFTA goes beyond tariffs into regulatory alignment.
GeorgiaDCFTA (Deep and Comprehensive Free Trade Area)
Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and SerbiaStabilisation and Association ProcessNearly 100% of products enter the EU duty-free and quota-free
CanadaComprehensive Economic and Trade Agreement (CETA)99% (Since 2024, up from 98% at entry)
New ZealandEU–New Zealand Free Trade Agreement94% (At entry in 2024); rising to 98.5% by 2031
SingaporeEU–Singapore Free Trade Agreement (EUSFTA)100% (Reached by Nov 2024 after phase-in)
South KoreaEU–Korea Free Trade Agreement99% (Eliminated by 2016)
JapanEU–Japan Economic Partnership Agreement (EPA)~99% (Following transition periods)
VietnamEU–Vietnam Free Trade Agreement (EVFTA)~92% (Currently); rising to 99.2% by 2027
Mexico Modernised EU-Mexico Global Agreement 100% (Industrial goods), 99% (agriculture and fisheries)
Central America (Costa Rica, Guatemala, Honduras, Nicaragua, Panama, El Salvador)EU–Central America Association Agreement99% (Industrial goods) + 73% (Agri lines)
Andean Community (Colombia, Peru, Ecuador)EU–Andean Community Free Trade Agreement100% of industrial and fisheries tariff lines and approximately 95% of total tariff lines
ChileEU–Chile Advanced Framework Agreement99.9% of EU exports and 95% of total bilateral trade
Mercosur (Argentina, Bolivia, Brazil, Paraguay, Uruguay)*Agreement pending ratification*95% (Planned upon full implementation)

The EU also has less comprehensive trade agreements with the countries of the Near East and Africa.

MENA countries

Country/partnerAgreement typeEU tariff lines duty‑free (status)
MoroccoEU Association AgreementIndustrial goods: largely duty‑free under the Association Agreement framework (agriculture varies by product).
AlgeriaEU Association AgreementIndustrial goods: largely duty‑free under the Association Agreement framework (agriculture varies by product).
TunisiaEU Association AgreementIndustrial goods: largely duty‑free under the Association Agreement framework (agriculture varies by product).
EgyptEU Association AgreementIndustrial goods: largely duty‑free under the Association Agreement framework (agriculture varies by product).
IsraelEU Association AgreementIndustrial goods: largely duty‑free under the Association Agreement framework (agriculture varies by product).
PalestineEU Association AgreementIndustrial goods: largely duty‑free under the Association Agreement framework (agriculture varies by product).
JordanEU Association AgreementIndustrial goods: largely duty‑free under the Association Agreement framework (agriculture varies by product).
LebanonEU Association AgreementIndustrial goods: largely duty‑free under the Association Agreement framework (agriculture varies by product).
TurkeyEU–Turkey Customs UnionWithin scope of the Customs Union, industrial goods circulate tariff‑free (coverage differs from a classic FTA).

Sub-Saharan African countries

Region / CountryAgreement StatusEU Tariff Lines Duty-Free (Status)
SADC (South Africa, Botswana, Lesotho, Namibia, Eswatini, Mozambique)Active (Since 2016)100% (Duty-free, quota-free access for all goods; South Africa has a specific tariff schedule with some exceptions).
ESA (Mauritius, Seychelles, Zimbabwe, Madagascar, Comoros)Active (Since 2012/2021)100% (Immediate duty-free, quota-free access for all goods).
KenyaActive (Since July 2024)100% (Immediate duty-free, quota-free access for all goods).
GhanaInterim Active (Since 2016)100% (Immediate duty-free, quota-free access for all goods).
Ivory CoastInterim Active (Since 2016)100% (Immediate duty-free, quota-free access for all goods).
CameroonInterim Active (Since 2014)100% (Immediate duty-free, quota-free access for all goods).

Note: "100% duty-free" refers to the EU's treatment of imports from these partner countries (market access offer). The partner countries themselves reduce their tariffs on EU goods gradually over transition periods often lasting 15–25 years.


Additionally the EU is currently negotiating further trade agreements with Indonesia, Australia, India, Thailand, Malaysia and Philippines. Those with Australia and Indonesia should come into force next year.

Partner CountryStatusEU Tariff Lines Duty-Free (Goal)Partner Tariff Lines Duty-Free (Goal)Likely Adoption / Entry
IndonesiaConcluded (Sept 2025)98.5% (Upon entry)~96% (After 7-year phase-in)2026-2027 (Ratification ongoing)
IndiaAdvanced / Decisive PhaseHigh Ambition (Seeking near 100% industrial)Lower Ambition (Sensitive on Auto/Agri)2026+ (Delayed from 2025 target)
AustraliaRevived / Advanced~99% (Industrial goods)~98-100% (Aiming to match UK/NZ deals)Late 2026 (Hopeful breakthrough)
ThailandActive Negotiations~99% (Goal for modern standard)Significant reduction (Auto/Lux goods sensitive)2026-2027
PhilippinesIntermediate Phase99% (Building on current GSP+ zero tariffs)~90-95% (Gradual phase-in)2027+
MalaysiaEarly Stage (Resumed Jan 2025)Aiming for 99% (Standard EU goal)To be defined (Focus on services/procurement)2027-2028
 
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President Trump's tariffs are forcing a re-organization of world trade away from the United States. More and more countries are signing free trade agreements between each others. In 2 days the EU is due to sign a free trade agreement with Mercosur countries (Argentina, Bolivia, Brazil, Paraguay, Uruguay), meaning that the European Union will now have free trade agreements with virtually all countries on the American continent except the United States and Cuba (and Venezuela while it is being suspended from Mercosur).

Partner countryAgreementEU tariff lines duty-free (status)
United KingdomTrade and Cooperation Agreement (TCA)100% (Zero tariffs on all qualifying goods)
UkraineDCFTA (Deep and Comprehensive Free Trade Area)Tariffs are widely reduced/removed with phased schedules; DCFTA goes beyond tariffs into regulatory alignment.
CanadaComprehensive Economic and Trade Agreement (CETA)99% (Since 2024, up from 98% at entry)
New ZealandEU–New Zealand Free Trade Agreement94% (At entry in 2024); rising to 98.5% by 2031
SingaporeEU–Singapore Free Trade Agreement (EUSFTA)100% (Reached by Nov 2024 after phase-in)
South KoreaEU–Korea Free Trade Agreement99% (Eliminated by 2016)
JapanEU–Japan Economic Partnership Agreement (EPA)~99% (Following transition periods)
VietnamEU–Vietnam Free Trade Agreement (EVFTA)~92% (Currently); rising to 99.2% by 2027
Central AmericaEU–Central America Association Agreement99% (Industrial goods) + 73% (Agri lines)
Mercosur**Agreement pending ratification*95% (Planned upon full implementation)

The EU also has less comprehensive trade agreements with the countries of the Near East and Africa.

MENA countries

Country/partnerAgreement typeEU tariff lines duty‑free (status)
MoroccoEU Association AgreementIndustrial goods: largely duty‑free under the Association Agreement framework (agriculture varies by product).
AlgeriaEU Association AgreementIndustrial goods: largely duty‑free under the Association Agreement framework (agriculture varies by product).
TunisiaEU Association AgreementIndustrial goods: largely duty‑free under the Association Agreement framework (agriculture varies by product).
EgyptEU Association AgreementIndustrial goods: largely duty‑free under the Association Agreement framework (agriculture varies by product).
IsraelEU Association AgreementIndustrial goods: largely duty‑free under the Association Agreement framework (agriculture varies by product).
PalestineEU Association AgreementIndustrial goods: largely duty‑free under the Association Agreement framework (agriculture varies by product).
JordanEU Association AgreementIndustrial goods: largely duty‑free under the Association Agreement framework (agriculture varies by product).
LebanonEU Association AgreementIndustrial goods: largely duty‑free under the Association Agreement framework (agriculture varies by product).
TurkeyEU–Turkey Customs UnionWithin scope of the Customs Union, industrial goods circulate tariff‑free (coverage differs from a classic FTA).

Sub-Saharan African countries

Region / CountryAgreement StatusEU Tariff Lines Duty-Free (Status)
SADC (South Africa, Botswana, Lesotho, Namibia, Eswatini, Mozambique)Active (Since 2016)100% (Duty-free, quota-free access for all goods; South Africa has a specific tariff schedule with some exceptions).
ESA (Mauritius, Seychelles, Zimbabwe, Madagascar, Comoros)Active (Since 2012/2021)100% (Immediate duty-free, quota-free access for all goods).
KenyaActive (Since July 2024)100% (Immediate duty-free, quota-free access for all goods).
GhanaInterim Active (Since 2016)100% (Immediate duty-free, quota-free access for all goods).
Ivory CoastInterim Active (Since 2016)100% (Immediate duty-free, quota-free access for all goods).
CameroonInterim Active (Since 2014)100% (Immediate duty-free, quota-free access for all goods).

Note: "100% duty-free" refers to the EU's treatment of imports from these partner countries (market access offer). The partner countries themselves reduce their tariffs on EU goods gradually over transition periods often lasting 15–25 years.


Additionally the EU is currently negotiating further trade agreements with Indonesia, Australia, India, Thailand, Malaysia and Philippines. Those with Australia and Indonesia should come into force next year.

Partner CountryStatusEU Tariff Lines Duty-Free (Goal)Partner Tariff Lines Duty-Free (Goal)Likely Adoption / Entry
IndonesiaConcluded (Sept 2025)98.5% (Upon entry)~96% (After 7-year phase-in)2026-2027 (Ratification ongoing)
IndiaAdvanced / Decisive PhaseHigh Ambition (Seeking near 100% industrial)Lower Ambition (Sensitive on Auto/Agri)2026+ (Delayed from 2025 target)
AustraliaRevived / Advanced~99% (Industrial goods)~98-100% (Aiming to match UK/NZ deals)Late 2026 (Hopeful breakthrough)
ThailandActive Negotiations~99% (Goal for modern standard)Significant reduction (Auto/Lux goods sensitive)2026-2027
PhilippinesIntermediate Phase99% (Building on current GSP+ zero tariffs)~90-95% (Gradual phase-in)2027+
MalaysiaEarly Stage (Resumed Jan 2025)Aiming for 99% (Standard EU goal)To be defined (Focus on services/procurement)2027-2028
One of the most relevant and complete trade and economic agreements of the EU, outside Europe, is with Chile. It was signed on 2002, in force since 2003. https://policy.trade.ec.europa.eu/e...tries-and-regions/chile/eu-chile-agreement_en
 
The agreement UE-Mercosur has strong symbolic and geopolitical value, initially having more of an emotional and psychological impact, considering that European institutions still enjoy a certain global prestige and are often a benchmark for good regulatory practices, than a significant economic impact, at least for Brazil in short time. This agreement may increase investor confidence and global influence because it sends a positive political signal: the conclusion of an agreement after more than 25 years of negotiations sends an important political message about openness and integration. However, in practice, the economic gains will be gradual and will depend on its full implementation and overcoming resistance from both sides. The Voices of inefficiency and backwardness that are sustained by strong government subsidies oppose its implementation for fear of competition:

I don't have a position for or against the agreement. Personally, I am indifferent.
Trump did Brazil a huge favor by taxing our export goods and products by 50%. We discovered that there is life outside of America (maybe outside Europe also). Players from China, India, Indonesia, the Arab world, Latin America, and Africa are making a big difference today, and the redirection of exports has led the country's trade balance to achieve historic surpluses. On the other hand, inflation in the US has made the 50% tax on Brazilian products almost symbolic, with the publication by American Government of a list of exceptions to the taxation of Brazilian products that looks more like an extra edition of the old British Encyclopedia. The expensive hamburger can bring down a president in the US… The ticking of the supermarket cash register makes all the difference to the average US consumer, who is the main voter for Donald Trump and who has no interest in knowing who this Trump of the tropics is, who claims to be a victim of lawfare and whose political affinity with the President of the United States was supposedly the main reason for imposing the surcharge on Brazil.
 
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The agreement UE-Mercosur has strong symbolic and geopolitical value, initially having more of an emotional and psychological impact, considering that European institutions still enjoy a certain global prestige and are often a benchmark for good regulatory practices, than a significant economic impact, at least for Brazil in short time. This agreement may increase investor confidence and global influence because it sends a positive political signal: the conclusion of an agreement after more than 25 years of negotiations sends an important political message about openness and integration. However, in practice, the economic gains will be gradual and will depend on its full implementation and overcoming resistance from both sides. The Voices of inefficiency and backwardness that are sustained by strong government subsidies oppose its implementation for fear of competition:

I don't have a position for or against the agreement. Personally, I am indifferent.
Trump did Brazil a huge favor by taxing our export goods and products by 50%. We discovered that there is life outside of America (maybe outside Europe also). Players from China, India, Indonesia, the Arab world, Latin America, and Africa are making a big difference today, and the redirection of exports has led the country's trade balance to achieve historic surpluses. On the other hand, inflation in the US has made the 50% tax on Brazilian products almost symbolic, with the publication by American Government of a list of exceptions to the taxation of Brazilian products that looks more like an extra edition of the old British Encyclopedia. The expensive hamburger can bring down a president in the US… The ticking of the supermarket cash register makes all the difference to the average US consumer, who is the main voter for Donald Trump and who has no interest in knowing who this Trump of the tropics is, who claims to be a victim of lawfare and whose political affinity with the President of the United States was supposedly the main reason for imposing the surcharge on Brazil.
 
As a resident of another Mercosur member country, Uruguay, I have a slightly different view than Duarte's.
Brazil is the fifth largest country in the world, ranks among the top 10 economies, and has 200 million inhabitants. It is a continent unto itself, self-centered (almost like the US), and forms part of the BRICS group, as an alternative to the global power of the USA.
Therefore, it is understandable that the agreement with the European Union is not as important to them as it is to us.
I can also understand the position of French farmers and those from other countries; if I were in their place I would think the same.
But I think that for cultural and historical reasons, South America and Europe would be natural partners, especially after the current US government shows intentions of breaking the Atlantic bloc formed since the end of the Second World War.
And in an agreement of this nature...there are always losers. European farmers are among the first...but also certain industrial sectors in South America. For example, in my country, almost all the medications we use are produced in Uruguay. This agreement would allow the entry of European medications, which would mean the loss of those kinds of jobs, which are among the best paid.
But among the positive aspects... Europe would secure raw materials, and South American countries would see an increase in revenue from selling them. If the agreement isn't reached... someone else will be interested in them, especially China.
 
As a resident of another Mercosur member country, Uruguay, I have a slightly different view than Duarte's.
Brazil is the fifth largest country in the world, ranks among the top 10 economies, and has 200 million inhabitants. It is a continent unto itself, self-centered (almost like the US), and forms part of the BRICS group, as an alternative to the global power of the USA.
Therefore, it is understandable that the agreement with the European Union is not as important to them as it is to us.
I can also understand the position of French farmers and those from other countries; if I were in their place I would think the same.
But I think that for cultural and historical reasons, South America and Europe would be natural partners, especially after the current US government shows intentions of breaking the Atlantic bloc formed since the end of the Second World War.
And in an agreement of this nature...there are always losers. European farmers are among the first...but also certain industrial sectors in South America. For example, in my country, almost all the medications we use are produced in Uruguay. This agreement would allow the entry of European medications, which would mean the loss of those kinds of jobs, which are among the best paid.
But among the positive aspects... Europe would secure raw materials, and South American countries would see an increase in revenue from selling them. If the agreement isn't reached... someone else will be interested in them, especially China.
Dear Ítalo.
I understand and respect your position. What disgusts me are the arguments used to disqualify Mercosur products. Arguments that have never been used by any other important trading partner in the world, including the United States. At least Trump is more honest in saying that he is taxing us because there is no balance in the trade relationship between the two countries and not because our products do not have sufficient sanitary quality to be able to enter the US.
I consider it valid to use the argument of competition because after all our products have greater scale, our productivity is higher, we have an absurd amount of completely flat arable land that allows us a very high degree of mechanization, and the agricultural technology adapted to our soils and climates sometimes allows us two or three harvests a year where, in Europe, one barely manages one harvest a year. There would indeed be a justification for a surcharge to safeguard agriculture and local farmers who base their production on smallholdings that, to maintain their traditional style of cultivation and harvesting, also depend on government subsidies. It is important to guarantee the food security of the population without significantly depending on food imports. What cannot be tolerated are the sensationalist positions that are closer to a bad joke or intellectual dishonesty when claiming that our products are of poor quality and will compromise the health of the local population. This sensationalist and dishonest tone undermines any kind of serious negotiation or dialogue. We are experiencing this type of dishonesty in Brazil today, for example, in the discussion of gas and oil exploration by fracking, which is totally prohibited in Brazil and widely used in the USA and Argentina. We import, through pipelines, natural gas produced by fracking in the Vaca Muerta shale reserves in Argentina, but we are prohibited from doing so in our own territory because environmental licenses are not granted. The issue is in its final stages of discussion at the country's Supreme Court, and those opposed to the exploitation of the Brazilian’s shale reserves through hydraulic fracturing go so far as to say that we should stop buying Argentine apples and peaches because today, due to shale production in the neighboring country, eating these fruits would put us at risk of serious illnesses due to soil and groundwater contamination there, and that the same will happen in Brazil if fracking is legalized here. This type of intellectual dishonesty disqualifies those who oppose the legalization of fracking, just as it sounds like a bad joke and dishonest to hear a Belgian farmer participating in the protest say that Europe will import products that can be produced there with better quality, products that are prohibited there but allowed here, a matter of health for European citizens. I felt like repeating an Italian swear word I learned from a very funny and playful uncle of my wife, but I can't reproduce it because I would be permanently banned from this forum.
 
I completely agree with you, Duarte. In a way, it reminds me of things that happened during the Spanish viceroyalty in the 18th century. The current Argentine province of Mendoza has a climate similar to the Mediterranean region, and because of this, grapevines and olive trees began to be planted, achieving exceptional productivity. Perceiving the fierce competition, Spanish farmers managed to get the king to order the uprooting of all the olive trees and vineyards. This was one of the many reasons that fueled desires for independence in this part of the world. Today, crops aren't destroyed, but doubts are sown about their quality.
 
The EU-Mercosur Free Trade Agreement has finally been signed, creating the largest trading block in the world!

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Yesterday, the European Union signed a free trade agreement with India. This will create the largest free trading zone in the world, covering 25% of the world's GDP and two billion people.

The new EU-India Trade Agreement eliminates tariffs on ~97% of EU exports, saving €4 BILLION annually.
  • Car tariffs:~ 110% → 10%
  • Wine duties:~ 150% → 20%
  • Processed foods:~ 50% → 0%

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Here is a detailed explainer about the EU-India Free Trade Agreement.

 
After years of negotiation, the new EU–Australia Free Trade Agreement (FTA) has officially come into force this month — a major step in strengthening economic ties between Europe and Australia. Here’s a quick breakdown of what’s in it and why it matters.

Key points​

  • Tariff reduction: Over 95% of EU exports to Australia and nearly all Australian goods entering the EU will now be duty-free. This includes industrial equipment, agricultural products, and wine — a big win for both European and Australian producers.
  • Market access: European car manufacturers, green tech companies, and digital service providers will get easier access to Australian markets, while Australian food exporters (like beef, dairy, and wine sectors) gain better access to EU consumers.
  • Sustainability standards: The deal includes strong environmental and labor protections, aligning both economies toward carbon neutrality and fair trade. It’s also the first EU trade pact to specifically address sustainable energy materials such as lithium and rare earths.
  • Digital cooperation: The FTA promotes cross-border digital trade under EU data protection standards (GDPR-style safeguards still apply). Expect streamlined data transfers for businesses without lowering privacy norms.
  • Geographical indications: Hundreds of European food and drink names — from Feta to Parma ham — are now legally protected in Australia, meaning local copies will have to be clearly labeled.
The FTA deal also proposes an bundled mobility scheme. If confirmed, would work as follows:
  • Australians could live and work freely across all 27 EU member states for up to 4 years, with possible extensions
  • No job offer required before arrival — a major departure from current rules
  • It would replace and supersede existing bilateral working holiday visas, which come with age caps and tight restrictions
  • The deal is fully reciprocal — EU citizens would get equivalent rights to live and work in Australia
Currently, Australians can only stay in the Schengen Area for 90 days within any 180-day period, and working during that time is generally not permitted.
 
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