An important day for European competitiveness
Mercosur represents an opportunity for trade and investment with a potential market of 700 million people
by Ursula Von der Leyen
4' min read
4' min read
Europe has always been an active continent on the trade front, but currently faces a world of increasing trade barriers. Our companies and farmers face increasing restrictions, unfair competition and geopolitical uncertainties, all of which threaten their competitiveness. The new partnership between the EU and Mercosur represents an opportunity to reverse this trend. That is why I went to Montevideo this week: to conclude the negotiations and lay the foundations for a beneficial and intensified cooperation with a large and fast-growing market of more than 260 million people.
Five years ago we reached an initial agreement in principle between the European Union and the Mercosur countries: Brazil, Argentina, Uruguay and Paraguay. However, the agreement raised concerns in various sectors of European society and economy, from farmers to consumer associations and environmental NGOs.
We have listened carefully to these voices, and in five years of negotiations we have addressed the underlying concerns one by one. The agreement we have now reached includes the strongest forms of protection ever built into a trade agreement. It protects our most essential economic sectors, including agriculture and food. It protects our consumers by enforcing strict standards and prioritises the protection of our planet and its green lungs. This is not the same agreement as five years ago, it has been transformed. Today we can say with confidence that it is a better deal for European citizens.
This new partnership comes at a crucial time for Europe. The global landscape has become more fragmented and conflictual than before. Last year, the scale of global trade restrictions more than tripled. To meet these challenges, we must strengthen ties with like-minded partners.
The EU and Mercosur will create a market of 700 million people. This market will primarily benefit the tens of thousands of European companies - half of which are small and medium-sized enterprises - that already trade with Latin America. Mercosur duties on European products are high: 35 % for fashion products, 27 % for wines and up to 55 % for other agri-food products. The agreement will eliminate almost all duties on all products, which will save EU exporters up to EUR 4 billion per year.
