Federal Economy Minister Peter Altmaier said on Monday (September 21st) that he believed ratification of an EU trade agreement with South America was still possible, despite Europe`s anger at deforestation in Brazil. With this agreement, Mercosur governments are committed to simplifying and simplifying business activities in their countries by improving the business climate. They will do so through more predictable and transparent procedures and regulations and by improving access to their market. This will help them attract more investment from Europe and the rest of the world. Like all EU trade agreements, the EU-Mercosur agreement gives governments of both parties complete freedom to manage the distribution of water or other essential services as they see fit. They always decide whether these services are part of the public or private sectors. The agreement between the EU and Mercosur is no different. The EU`s new trade chief, Valdis Dombrovskis, said it was “clear that we need to take these issues seriously.” The EU has negotiated a trade agreement with the four founding countries of Mercosur (Southern Common Market) – Argentina, Brazil, Paraguay and Uruguay. Here you will find out what is in it, what the effects will be and how we will reach a final agreement. Mercosur is a major market for EU exports and has so far been Latin America`s only major trading partner with which the EU does not have a preferential trade agreement. EU companies exported to the four founding countries of Mercosur: the agreement will allow the EU and Mercosur to cooperate on certain regulatory issues on a voluntary basis. The agreement will also help integrate Mercosur`s industries into the EU`s highly innovative value chains. This, in turn, will help them become more competitive.
Mercosur countries are less willing to rely on raw material exports and diversify their economies by producing high-quality goods and services. The agreement will help them. Ten days ago, the EU and four Mercosur countries signed a free trade agreement that will cover a market of 780 million consumers. However, opinions still differ on both sides of the Atlantic. EURACTIV-Partner, Eurofe reports. The EU is already Mercosur`s main trading and investment partner. [1] In 2018, 20.1% of the trade bloc`s exports were exported to the EU. [8] Mercosur`s exports to the EU amounted to EUR 42.6 billion this year[8], while EU exports to Mercosur countries amounted to EUR 45 billion. [8] Mercosur`s largest exports to EU countries are agricultural products such as food, manufactured beverages and tobacco, plant products such as soybeans and coffee, and meat and other animal products.
[8] Among Europe`s largest exports to Mercosur are machinery, transport equipment and chemicals and pharmaceuticals. [8] In 2017, the EU exported 23 billion euros of services to the South American trading bloc, while around 11 billion euros of services arrived from Mercosur to Europe. [8] The pact between the European Union and the South American free trade bloc Mercosur – Brazil, Argentina, Paraguay and Uruguay – was agreed in principle last year after two decades of fighting. The EU wants the trade agreement with Mercosur to remove unnecessary and discriminatory barriers to European exports, so that European companies can sell more goods and services to Mercosur. Both the EU and Mercosur have strict laws on the protection of workers` rights. They agreed that the trade agreement between them must support existing rights and that it should not reduce or water them down.