Eu Trade Agreements Mercosur
In recent news, the European Union (EU) and Mercosur have finally reached a trade agreement that will greatly benefit both entities. The EU-Mercosur Free Trade Agreement (FTA) has been in negotiation for almost two decades, and it is expected to open up new markets and create new opportunities for both regions.
The Mercosur bloc is composed of four countries in South America – Argentina, Brazil, Paraguay, and Uruguay – with a combined population of over 290 million people. The EU-Mercosur FTA will create the largest free trade area in the world, covering a population of over 780 million people and a combined Gross Domestic Product (GDP) of around $19 trillion.
Some of the expected benefits of the EU-Mercosur FTA include the elimination of tariffs on over 90% of traded goods, increased market access for services, and increased investment opportunities. The agreement is also expected to boost economic growth, create jobs, and promote sustainable development.
The EU-Mercosur FTA has been a long time coming, with negotiations starting back in 2000. However, talks stalled several times over the years due to differences in agriculture and environmental policies. Environmental concerns were a particular sticking point, with many activists voicing concerns over deforestation in the Amazon rainforest. However, the final agreement includes commitments to sustainable development and the protection of the environment.
According to the European Commission, the EU-Mercosur FTA will save European businesses over €4 billion in tariffs per year, while also increasing EU exports by more than €8 billion. On the other hand, Mercosur countries will benefit from better access to European markets for their agricultural and industrial products.
The EU-Mercosur FTA still needs to be approved by both the European Parliament and the national parliaments of the Mercosur countries. It is expected to face some opposition, particularly in Europe, where some activists and politicians have voiced concerns over its impact on the environment and human rights.
In conclusion, the EU-Mercosur Free Trade Agreement is a historic deal that will have a significant impact on the global economy. It will create new opportunities for businesses and workers in both the EU and Mercosur, while also promoting sustainable development and environmental protection. While the agreement still has some hurdles to overcome, the potential benefits are too great to ignore.
