The EU-Mercosur agreement: An alliance with opportunities for millions
For the Mercosur countries, the agreement represents an unprecedented opening to the European market, with more than 450 million consumers. The EU, the second most important trading partner of the four Mercosur countries, will offer even more favourable conditions for Mercosur’s industrial and agricultural exports, with most remaining tariffs set at zero, the gradual reduction of others, or an increase in the export quotas currently in force.
From today, the European market is opening to Paraguayan, Brazilian, Argentine and Uruguayan businesses, boosting investment, innovation and the creation of skilled jobs. The reduction or elimination of import tariffs on machinery, the automotive sector and chemical products from Europe will lower production costs in Mercosur. Likewise, Mercosur consumers will benefit from lower prices for European products and greater choice.
Another key aspect is predictability. The agreement establishes clear and stable rules for trade, reducing uncertainty and costs. Small and medium-sized enterprises, in particular, will enjoy better conditions for internationalising their businesses and accessing new markets. Service providers, such as maritime transport operators, will benefit from greater stability and security.
The agreement promotes high standards in areas such as transparency and good regulatory practices. This contributes to a more efficient and less costly business environment, benefiting both exporters and importers.
From today, the geographical indications of Mercosur and the EU will be duly promoted, preserving our cultural traditions and boosting local economies. Some examples include Tandil salami from Argentina, Canastra cheese from Brazil, honey from the Ñeembucú Wetlands of Paraguay, and Montevideo wine from Uruguay.
In most public procurement, the agreement opens the market to greater competition, reducing costs for administrations and taxpayers. It is also important to highlight the potential to attract investment. With more predictable rules and preferential access to the European market, Mercosur becomes even more attractive to European investors, as envisaged in the EU’s Global Gateway agenda. The EU is already the leading foreign investor in all four countries, and the agreement will drive additional projects in infrastructure, technology and energy, with positive long-term impacts on the region’s economic development.
The agreement also establishes several joint committees to oversee its implementation and facilitate dialogue, with an important role for civil society.
The provisional entry into force today also symbolises a shared commitment to sustainable growth. The inclusion of the Paris Agreement means a commitment by both blocs to tackling climate change and essential support for the values of multilateralism.
A cooperation package of up to €1.8 billion is being developed, in partnership with Mercosur, to implement the agreement and strengthen local communities, family farmers and potentially marginalised productive sectors.
This agreement is not an end point, but a decisive step in a broader process of bringing our regions closer together. It shows that, even in the current context of global protectionism and coercion, it is possible to move forward with concrete solutions based on dialogue and cooperation.
As ambassadors of the European Union to the Mercosur countries, we are confident that this is only the beginning of a new, more dynamic and mutually beneficial phase in our strategic partnership. The time has come for all of us to roll up our sleeves and turn these opportunities into reality.
Automatic translation, please check against Spanish original.