The European Union activates the interim trade agreement with the Mercosur bloc, starting tomorrow
BRUSSELS, April 30, 2017 (WAM) – The interim trade agreement between the European Union and the Mercosur bloc of southern American countries will enter into temporary implementation as of tomorrow, May 1, in a step that the Union described as providing immediate and tangible benefits to European companies, workers, and citizens, by reducing customs duties and opening new opportunities in one of the largest trade regions in the world.
On this occasion, the President of the European Commission, Ursula von der Leyen, along with the President of the European Council, Antonio Costa, participate in a video conference with the leaders of the four Mercosur countries.
Von der Leyen said that the agreement represents “a good day for Europe’s competitiveness, flexibility and strategic location,” stressing that customs duties will be reduced from day one, and that new opportunities will be opened for European companies of all sizes, in addition to granting European farmers new export capabilities while fully preserving sensitive sectors.
For his part, European Trade and Economic Security Commissioner Maroš Šefčović said that May 1 represents “a big day for the European Union in the field of trade,” noting that the Commission has already begun intensive contacts with European companies, including small and medium enterprises, to ensure that they benefit from the new opportunities provided by the agreement.
The agreement stipulates the gradual elimination of customs duties on more than 91% of European goods exported to Mercosur, a market with more than 700 million people, and will, starting tomorrow, eliminate or reduce duties on major exports including cars, medicines, wines, spirits and olive oil.
European farmers and food producers benefit from reduced or eliminated duties, which enhances the competitiveness of their products in Mercosur markets. The European Union expects its agricultural and food exports to the region to rise by 50%, with the first customs quotas and reductions starting tomorrow.
344 protected European geographical indications will receive legal protection on Mercosur markets, preventing their imitation or illegal use.
It is also expected to begin removing a number of non-tariff and technical barriers, including rules for conformity assessment, labeling and respect for international standards, which will facilitate the work of European companies and accelerate their entry into the markets.
Government procurement markets will be opened for European companies to compete for public contracts at federal and local levels on equal terms with local companies.
The European Union expects that these gains together will increase its annual exports to the Mercosur region by 39% by 2040, to reach 50 billion euros annually.
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Related
