EU and Mercosur sign historic agreement: green light for reduced tariffs and new opportunities for 60,000 European companies
Tomorrow's signing in Paraguay: covers an area populated by 700 million people
The trade agreement between the EU and the South American Mercosur countries will be signed tomorrow in Paraguay. Tariffs on 91% of the trade between the two trading blocs will disappear. The agreement affects an area of the world inhabited by more than 700 million people. The trade agreement between the EU and Mercosur was approved with the positive vote of a qualified majority of the member states. Five governments voted against the agreement: France, Poland, Austria, Hungary and Ireland. Belgium abstained.
The ambassadors of the 27 EU countries confirmed the agreement with the European Parliament on the safeguard clauses of the trade agreement with Mercosur, but introduced a change: the threshold for triggering investigations on sensitive agricultural products - in case of possible market disturbances - was lowered from 8% to 5%.
Von der Leyen: 'Mercosur is the result of a generation'
The President of the EU Commission, Ursula von der Leyen, in the light of the approval of the 27 to the EU-Mercosur agreement, said: "Europe's perseverance and commitment to deliver on our priorities and keep our commitments is evident. He went on to say: 'Today 60,000 European companies export to Mercosur, half of which are small and medium-sized enterprises that will benefit from lower tariffs, save around €4 billion a year in export duties and benefit from simpler customs procedures. Basically, the agreement will give our companies better access to essential raw materials. We have listened to the concerns of our farmers and our agricultural sector and acted accordingly. This agreement contains solid guarantees to protect their livelihoods. We are also stepping up our actions on import controls, because the rules must be respected, including by importers."
"For over two decades, countless negotiators and leaders worked on the EU-Mercosur agreement. It has been a 25-year process. And now we have concluded it. It is the result of a generation". European Commission President Ursula von der Leyen said this at a press conference in Rio de Janeiro with Brazilian President Luiz Inacio Lula da Silva. "Today is a very special day. Between our regions and our peoples, the best is yet to come,' she stressed on the eve of the signing ceremony of the agreement in Paraguay, she added, emphasising that 'tomorrow's signing will only be a first step'.
The agreement includes 350 European geographical indications, more than any other EU trade agreement'. It is expected that the exports of the EU to Mercosur will grow by almost EUR 50 billion by 2040 and that Mercosur exports will in turn grow by up to EUR 9 billion.
