After a quarter of a century of negotiations…the signing of the trade agreement between the European Union and countries "Mercosur"

8 hours ago

2 minutes read

BRUSSELS, 17 JANUARY / WAM / The European Union and the Mercosur countries (Brazil, Argentina, Paraguay, Uruguay and Bolivia) today signed a trade agreement aimed at creating the largest free trade area in the world in a step described as historic as it came after negotiations that lasted for more than a quarter of a century.

Despite the expectations that accompany this agreement, the main concern lies in its impact on local markets, especially in the European agricultural sector.

The agreement includes a series of measures aimed at gradually eliminating customs duties on about 90% of the products exchanged between the two parties, which will contribute to reducing trade costs and increasing market openness.

But on the other hand, many observers are raising questions about the effects of this on European products that may be exposed to competition from goods coming from Mercosur countries at lower prices, at a time when they do not comply with the same environmental and social standards that govern European products.

One of the most prominent features of the agreement is the gradual elimination of customs duties on many traded industrial and agricultural goods, which will provide great opportunities for European companies to access new markets in South America.

However, this expansion of markets is not limited only to economic benefits; It also includes opening public markets in Mercosur countries to European companies, especially in the fields of infrastructure, energy and water, which raises concerns about the impact of this on local companies in those countries.

For agricultural products, the agreement provides reasonable guarantees by imposing import quotas on some agricultural commodities such as meat, poultry, sugar, and rice, so that imported quantities are set at reduced prices or without customs duties. This has upset many European farmers who see the move as a threat to their food security and competitiveness in their local markets.

But this does not mean that all parties in Europe oppose the agreement; Many European industrialists and manufacturers welcomed this agreement, considering it an opportunity to expand their markets and enhance their exports.

The automobile industry sector, for example, is one of the largest potential beneficiaries of this agreement, as the abolition of customs duties imposed on cars coming from Mercosur countries will enhance the ability of European companies to enter markets such as Brazil and Argentina, which will allow them to increase their share in those markets, which are large and prosperous.

The environmental aspect was also a focus of attention during the negotiations.

Although the agreement includes a commitment to sustainable development and environmental protection, including respecting the Paris Climate Agreement and combating deforestation, some critics consider that these commitments are non-binding and that the absence of strict implementation mechanisms makes it difficult to ensure their actual implementation.

In particular, there are concerns that this agreement will accelerate deforestation in the Amazon region, a sore point for environmental organizations that see the agreement as a threat to global efforts to combat climate change.

The agreement between the European Union and Mercosur opens new horizons for trade and economics, but at the same time it raises many questions and challenges related to the protection of local industries, especially in Europe. While some see it as an opportunity to boost economic growth and expand markets, others see it as potentially coming at a high environmental and social cost, and limiting the ability of European countries to maintain their environmental and social standards.

pro/z/wm