The European Union and Mercosur countries have signed a Partnership Agreement and a Temporary Trade Agreement, creating the basis for one of the largest trade and economic areas in the world. The document opens access to a market of almost 700 million consumers and significantly expands cooperation opportunities between the two regions, according to agronews.ua.
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The European Union and Mercosur countries have officially signed the Partnership Agreement (EPA) and the Temporary Trade Agreement (iTA). This agreement lays the groundwork for deepening economic, diplomatic, and geopolitical relations.
The agreements cover a market of about 700 million consumers and, according to the European Commission’s estimates, could increase EU exports to Mercosur countries by almost 39%, or approximately €49 billion annually. It is expected that the implementation of the agreement will contribute to the creation and preservation of hundreds of thousands of jobs in EU countries.
The document foresees a gradual elimination of tariffs on a significant portion of European exports, including agricultural products and key industrial goods such as automobiles, machinery, and pharmaceutical products. This will allow EU businesses to save up to €4 billion annually on customs duties.
Special attention in the agreement is given to investments in strategic supply chains, strengthening economic security, and supporting the green and digital transition in the EU and Mercosur countries.
For the EU’s agricultural sector, the agreement opens unprecedented access to Mercosur markets. It is expected that EU exports of agricultural products could increase by up to 50%, particularly due to reduced tariffs on wine, spirits, dairy products, and olive oil. The protection of 344 EU geographical indications is also provided for.
At the same time, the European Union has put in place a series of protective mechanisms for sensitive sectors, including tariff quotas, legally binding safeguards in case of a sudden surge in imports, enhanced standards control, and a €6.3 billion farmers’ support fund, which is set to start operating from 2028.
The agreement contains some of the EU’s most ambitious commitments in the field of sustainable development, including confirming the Paris Climate Agreement, respecting labor rights, gender equality principles, and aiming for climate neutrality by 2050.
The international partnership agreement will be subject to ratification by all EU member states in accordance with national procedures. In contrast, the Temporary Trade Agreement will only be ratified at the EU level, requiring the approval of the European Parliament and a decision by the EU Council, after which it will enter into force.
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Теги: agricultural sector, Digital Transition, Economic Security, economy, EU, European Union, exports, geographical indications, green transition, industrial goods, investments, market access, Mercosur, Mercosur countries, Partnership Agreement, Ratification, sustainable development, tariffs, Temporary Trade Agreement, trade agreement