EU-Mercosur trade agreement after 20 years of negotiations

This agreement between the European Union and the Mercosur countries (Brazil, Argentina, Uruguay and Paraguay) will eliminate many tariffs between the two parties. The GDP of the EU and Mercosur accounts for 1/4 of world GDP, or 18 000 billion euros. This agreement raises the concern of European farmers and questions about its consequences for the climate.

 

 

 

An agreement was reached last Friday between the European Commission and the Mercosur countries (Brazil, Argentina, Uruguay and Paraguay) after 20 years of discussions. The EU and the Mercosur countries account for 770 million consumers and 18 billion euros of GDP, or 1/4 of world GDP. This agreement will eliminate many tariffs between the two parties at the industrial and agricultural levels.

 

 

 

For the EU, Mercosur's high tariffs on cars (35%) and spare parts (18%) will be eliminated. Europeans have obtained the protection of 357 geographical indications. For the Mercosur countries, increased access to the European market for their agricultural production, especially meat. The agreement will allow the export of 99 000 tonnes of beef annually in Europe without customs duty.

 

 

 

This agreement is causing concern among European farmers who fear unfair competition, as well as many organizations that are worried about its consequences for the climate.

 

 

 

This agreement negotiated by the European Commission must be approved by the 28 Member States and then validated by the European Parliament.