the european union (eu) and mercosur are the largest and most influential regions, both by population and in terms of size of the economy, of their respective continents. the renewed priority given to biregional cooperation launched by the inter-regional framework agreement signed in 1995 is based on deep historical, political, economic and cultural links between the two regions. the potential advantages of an agreement that will foster a process of dynamic cooperation are enormous, ranging from political influence to economic returns, including the gains from comparative advantage, expanding markets, improved environment for investments, and positive spillovers on human and social capital, democracy, and justice. a free trade agreement between the two regions should also be evaluated in the context of the new regionalism initiatives taking place around the world, in particular the free trade area of the americas (ftaa) negotiations and the process of enlargement and deepening of th...
