Key Benefits of the EU-Mercosur Agreement
The EU-Mercosur agreement is expected to bring numerous benefits to both parties, including:
Boosting Strategic Trade and Political Ties
The agreement will strengthen the strategic trade and political ties between the EU and Mercosur, promoting greater cooperation and understanding between the two regions.
Supporting Economic Growth and Competitiveness
The agreement will support economic growth, boost competitiveness, and strengthen the resilience of both parties by opening up trade and investment opportunities and ensuring sustainable access to raw materials.
Fighting Climate Change and Deforestation
The agreement represents an important milestone in the fight against climate change, with strong, specific, and measurable commitments to stop deforestation and promote sustainable development.
Protecting EU Interests and Standards
The agreement takes into account the interests of all Europeans, including the agricultural sector, and will help increase EU agri-food exports while protecting sensitive sectors. It also ensures that EU standards on animal health and food safety are respected, preventing unsafe products from entering the EU market.
Tariff Elimination and Market Access
The agreement will eliminate tariffs on 91% of goods exported by EU companies to Mercosur, including industrial products such as automobiles, auto parts, machinery, and chemical products. It will also progressively eliminate tariffs on EU food and drink exports, such as wine, chocolate, and whiskey.
E-commerce and SMEs
The agreement contains general rules on electronic commerce that aim to eliminate unjustified barriers to commerce carried out by electronic means, provide legal certainty to companies, and guarantee a safe online environment for consumers. It also addresses the specific needs of small and medium-sized enterprises (SMEs), requiring both parties to provide information on market access and creating an “SME Coordinator” to cooperate in identifying ways for these companies to benefit from the agreement.
Next Steps
The parties still need to carry out a legal review to prepare a definitive text of the agreement. The Commission will then translate the text into all official EU languages and present it for approval by the Council and the European Parliament.