A preliminary agreement between the European Union and Mercosur towards an association agreement
Brussels, 6 December / WAM / The European Union and the countries of South America (Mercosur) reached a political agreement on an association agreement at a critical time for both sides.
According to a statement by the European Commission, which said that the agreement provides opportunities to achieve mutual gains by enhancing geopolitical, economic, sustainable and security cooperation.
The proposed agreement between the European Union and MERCOSUR consists of a political and cooperation pillar, and a trade pillar. The end of the negotiations constitutes the first step in the process towards concluding the agreement.
European Commission President Ursula von der Leyen and her counterparts from four Mercosur countries (Brazilian President Lula, Argentine President Meli, Paraguayan President Peña, and Uruguayan President Lacalle Pue) concluded negotiations for this agreement, which will support economic growth and competitiveness by opening trade and investment opportunities. Ensuring sustainable access to raw materials and processing.
The deal aims to secure and diversify both parties’ supply chains and provide new opportunities for all types of companies, by removing often prohibitive tariffs on EU exports to MERCOSUR.
It also saves EU companies €4 billion in fees annually, in addition to ensuring trade preferences in strategic zero-emission industry sectors such as renewable energy technologies and low-carbon fuels.
It helps SMEs export more by cutting red tape and ensuring an efficient, reliable and sustainable flow of raw materials essential for the global green transition. .
This deal takes sustainability commitments between the EU and MERCOSUR to the next level by making the Paris Agreement a key element in the relationship between the EU and MERCOSUR and making concrete commitments to halt deforestation.
Moreover, the European Union supports €1.8 billion to facilitate a just green and digital transition in the Mercosur countries.
Pro/Wam
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