The Argentine Foreign Ministry announced the signing of a Free Trade Agreement between him MERCOSUR And the Member States of the European Free Trade Association (EFTAin English). After a summit in Rio de Janeiro, the agreement will give life to a commercial area for about three hundred million people, after eight years of negotiations.
The treaty will create a free trade area of almost 300 million people with a combined GDP of more than US $ 4.3 billion, added EFE Agency.
“Both sides will benefit from access improvements to markets For more than 97% of its exportswhich will result in an increase in bilateral trade and advantages for companies and individuals, “Werthein’s wallet said.
Mercosur and EFTA signed a free trade agreement
According to the portfolio, this step will create New business opportunities for economic agents in countries of both entities, “including the large number of small and medium -sized companies in each jurisdiction.”
In addition, “more access to markets and modernized regulations for customs office” will be provided: “Economic agents will benefit from the greater predictability and legal certainty in commerce“
As for the various items subject to commercial flow, they are included goods, services, investments, intellectual property rights, public purchases, competition, rules of origin, commercial defense, sanitary and phytosanitary measuresamong others.
The negotiations began with a first round in July 2017 in Buenos Aires and 14 negotiation rounds were held in total.
An “historical” agreement
During the signing of the agreement, the representatives of the member countries of both blocks highlighted “the historical nature of the treaty and commitment of the alliance with free trade,” the EFE agency cited.
“In the midst of a world in uncertainty we are giving proof that it is possible to strengthen multilateralism and free trade,” said the Vice President of Brazil, Geraldo Alckminat the ceremony, held in the Itamaraty Palacein Rio de Janeiro.
The issue was also highlighted by Foreign Minister Vieira, who stressed that it is an agreement “fair and based on clear rules” and by the Foreign Minister of Uruguay, Mario Lubetkin, who also described him as a “strategic alliance.”
Among the sections of the agreement, it was agreed that, once the treaty, EFTA will eliminate 100% of import tariffs on the products of the industrial and fishing sectors from Mercosur.
For its part, the South American block will have a period of fifteen years to conclude a gradual process of tariff reductions On most imports of industrial products of the new European partners.
EFTA also promised to grant immediately tariff preferences, contingent free of tariffs or total liberalization For a wide range of key agricultural products for Mercosur, such as coffee, beef, bird and pork, ethanol and wine.
There is still approval of parliaments
The entry into force of the agreement will not be immediate and will depend on parliamentary approval in each nationa process that can be extended until the end of 2026 or even for an indeterminate time.
However, it will apply bilaterally between each state part of the Mercosur and each country member of the EFTA as the ratifications are approved. In 2024, Mercosur exported goods to EFTA for US $ 373 million and imported products for 3,824 million, with Switzerland as the main commercial partner.
Source: Ambito
