The European organization is composed of Iceland, the Principality of Liechtenstein, the kingdom of Norway and the Swiss Confederation. The States Parties issued a statement with the details of the negotiations.
In it Mercosur Summit framework that takes place in Argentina-, the regional common space confirmed that an agreement was reached by the Free Trade Agreement with the EFTA European Blockcomposed of Iceland, the Principality of Liechtenstein, the Kingdom of Norway and the Swiss Confederation. The Argentine Foreign Ministry authorities stressed that the agreement will create an area of “Almost 300 million people with a combined GDP of more than US $ 4,3 trillions.”
The dialogue between both blocks had begun more than a decade ago, in March 2015, with a series of exploratory conversations that resulted in the start of official negotiations in June 2017. In total, they had pass 14 contact rounds – including that of the summit in force – to achieve the final agreement.
Mercosur confirmed a free trade agreement with the EFTA European bloc
As detailed by the joint statement of the States signatories of MERCOSUR and the states of the EFTA, “both sides will benefit from access improvements to markets for more of the 97% of its exportswhich will result in an increase in bilateral trade and advantages for companies and individuals. “The agreement will cover; goods of goods; services; investments; intellectual property rights; public purchases; competence; Rules of origin; commercial defense; sanitary and phytosanitary measures; technical obstacles to trade; Legal and horizontal issues – including dispute solution -, and a chapter of trade and sustainable development with its corresponding understanding.
“The Free Trade Agreement will create new business opportunities for economic agents in Mercosur and EFTA countries, including the large number of small and medium -sized companies in each jurisdiction. It will provide greater access to markets and modernized regulations for the customs office and the accumulation of origin. The economic agents of the Mercosur and EFTA countries will benefit from the greatest predictability and legal certainty in commerce“said the statement issued in accordance with both parties.
The steps to follow after the announcement of the agreement
After the announcement of the scope of the agreement, the Argentine Chancellor, Gerardo Werhtein, confirmed that the agreement is expected to be signed in the coming months of 2025 “. In this way, communication is only the initial kick for the concretion of negotiations.
It is that the initial agreement does not formalize the validity of the Free Trade Agreement. After this, It will be missing that the internal approvals of the countries involved to enter into force.
Source: Ambito
