A large trade agreement between the EU and Mercosur is now finished. This happened after 25 years of talks. The deal was signed in Paraguay. It will create one of the biggest trade areas in the world. This is good news for Cyprus. It can help the country's economy. It also offers more choices. The deal helps against rising global trade problems. It also helps with world uncertainty.
Cyprus's Minister of Commerce, Michael Damianos, spoke about the deal. He said it will bring "clear benefits for Cyprus." These benefits are for trade and services. This is important in a world with many uncertainties. The President of the European Commission, Ursula Von der Leyen, agreed. She said, "We choose fair trade over tariffs." She also said, "We choose a productive long-term partnership over isolation." The deal needs approval from the European Parliament. It also needs approval from Mercosur countries.
The agreement will help Cyprus more than just with lower prices. It will make sure Cyprus gets important raw materials. Cyprus buys soybeans from Argentina. It also buys coffee and fruit juice from Brazil. This deal will make these supplies easier to get. Prices might become more stable. This will help businesses and people in Cyprus. It will also help Cyprus sell its own products. For example, Cypriot cheese faces a high tax now. This deal could lower that tax. Cyprus could also sell medicines to South America.
The deal also includes rules for sea transport. This is very important for Cyprus's economy. It can create new opportunities. The EU wants to find new markets. It wants more trading partners. This makes EU economies stronger. It helps them deal with economic problems.
However, some groups are worried. Some farming and environment groups have concerns. They worry about more imports from South America. They also worry about the environment. They mention trees being cut down. But EU leaders say the deal is fair. They say it builds strong partnerships. This trade deal could bring a new period of good connections and a strong economy for Cyprus.