Trade: Orgalim Position Paper on the EU-Mercosur Free Trade Agreement
Published: 15 April 2020
Policies & Issues: Trade
In June 2019, after twenty years of negotiations, an in-principle agreement on trade between the EU and Mercosur (Argentina, Brazil, Uruguay and Paraguay) was reached. The EU-Mercosur free trade agreement is important for our companies as the trade flows between the EU and Mercosur countries stand at €17 billion per year.
There is global competition for market access to the Mercosur countries between European, Asian and American manufacturers. The EU-Mercosur free trade agreement (FTA) is a positive development for the economies of both regions, especially in view of the increasing trade tensions on a global level. This FTA will allow Argentina and Brazil a stronger integration into international value chains. It should also increase market access for our companies, as this is currently limited following the exclusion of Brazil and Argentina from the EU's GSP scheme in 2015. Finally, it will also address the high tariff barriers in Mercosur countries (the Mercosur tariff for our sectors averages 14%, with peak tariffs of up to 20%). Dismantling the current high tariff barriers will create new export opportunities for our companies.
Therefore, Orgalim calls on the Commission to publish as soon as possible the market access offers and to take all necessary steps to enable the provisional and definitive entry into force of the trade agreement. We also call on the Parliament, the Council of the EU, and the EU Member States to support this balanced free trade agreement.
To read our position in full, please download the document above.
Adviser - Trade & Legal