Eu Mercosur Trade Agreement Next Steps

Mercosur is a major EU export market and has so far been the only major trading partner in Latin America with which the EU does not have a preferential trade agreement. EU companies export to the four founding countries of Mercosur*: they are also committed to promoting the positive contribution of trade to the fight against climate change. EU Trade Commissioner discusses MERCOSUR-EU trade negotiations in Paraguay and Uruguay The agreement prohibits both sides from promoting trade and investment excessively: the leaked documents also show that the EU-Mercosur Association Agreement creates structures that are not democratic and excludes the European Parliament and national parliaments from decision-making. According to the negotiated text, the “Association Council” and the “Association Committees” of the Agreement are empowered to denounce binding decisions and interpretations of the Agreement without democratic scrutiny or participation by the EU and national parliaments. On 24 February 2014, at the seventh Brazil-EU Summit, the Brazilian President indicated that a free trade agreement between MERCOSUR and the EU was about to be concluded. The agreement will reduce and eliminate discrimination and expand opportunities for service providers and investors in the EU and Mercosur. The leaked documents are the negotiated text of the EU-Mercosur Association Agreement, the cross-cutting treaty that contains the controversial EU-Mercosur Free Trade Agreement, parts of which have been publicly available since July 2019. The agreement will allow the EU and Mercosur to cooperate on certain regulatory issues on a voluntary basis. On the EU`s trade agreement with Mercosur With more than 260 million consumers and an annual GDP of €2.2 trillion, Mercosur is the fifth largest economy outside the EU. If the process is successful, the trade agreement will be the largest the EU has concluded for the affected population (780 million people) and one of the largest in terms of the volume of trade covered (€40-45 billion in imports and exports). The agreement aims to promote the exports of European companies in the automotive, chemical, pharmaceutical and clothing sectors and to offer them better access to public procurement markets in the Mercosur countries. In return, companies established in Mercosur, particularly in the agri-food industry, would benefit from greater outlets on the European market for their production, including beef, poultry, sugar/ethanol, etc.