The Sudamericanto block reached an agreement with Iceland, Liechtenstein, Norway and Switzerland. The same was announced during the summit that takes place in Buenos Aires.
He MERCOSUR and the European Free Trade Association (EFTA)made up of Iceland, Liechtenstein, Norway and Swissthey reached a Free trade agreement. This was officially announced during the MERCOSUR PRESIDENT SUMMight and associated statesheld in Buenos Aires within the framework of the LXVI Ordinary Meeting of the Common Market Council.
This new agreement will establish a joint commercial area of 300 million inhabitants and an estimated economic volume of U $ 4.3 billionaccording to the joint statement of both parties.
Negotiation and context process
The discussions between the MERCOSUR, composed of Brazil, Argentina, Uruguay and Paraguay, and the group EFTA They started in 2017but the process was extended for several years. In 2019a pre -agreement had already been reached, which was then stuck due to differences related to issues Environmental.
MERCOSUR EFTA TREATED FREE TRADE.JPG
Wednesday’s announcement marked the formalization of understanding, although it still remains that the signatory countries approve internally the treaty to enter into force. According to sources of Brazil Governmentcited in the previous Tuesday, this pact will not face the same political resistances that the agreement with the European Union.
The coordination of the negotiations was in charge of Argentina by the MERCOSURwhile Swiss represented the countries of the EFTA.
The closure of this agreement coincided with the impulse that the South American block tries to give the treaty with the European Unionsigned at a technical level in December, but still without approval by the Member States. In that case, objections from countries such as Francewho expressed concern about the possible negative impact on their agricultural producersbecause the standards that European farmers must meet would be more demanding than those required in South America.
Key Points of the Mercosur -Efta Agreement
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Establish one free trade zone Between both blocks.
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Involves 300 million people and a joint economy of U $ 4.3 billion.
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Includes commitments in areas such as Exchange of goods and services, investments and intellectual property.
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He was negotiated from 2017with a prior attempt failed in 2019.
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It needs to be ratified by parliaments of the signatory countries.
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Argentina led the negotiation by Mercosur, while Swiss He did it for Effta.
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It is considered a less conflicting agreement than that of Mercosur – European union.
This understanding represents a new step of MERCOSUR in its commercialization strategy and could open new opportunities for the growth of Regional exports towards the European continent.
Source: Ambito
