The industrial employers of the Mercosur, among which are those belonging to Argentina, Brazil, Paraguay and Uruguayurged governments to conclude the agreement with the European Union (EU).
The Argentine Industrial Union (UIA), the National Confederation of Industry (CNI) of Brazil, the Paraguayan Industrial Union (UIP) and the Chamber of Industries of Uruguay (CIU), which make up the Council, met in the Brazilian capital and established that with the agreement they will have “the opportunity to build a modern bi-regional association, aligned with the international commitments assumed by each country in terms of sustainable development,” said the Mercosur Industrial Council in a statement.
The declaration, prepared during the XI Mercosur Business Forum and sent to the Governments, considers that the agreement with Europe will allow “increasing commercial exchanges, promoting investments and promoting innovation and productive capacity.”
After two decades of arduous talks, on June 28, 2019 the EU and the Mercosur reached a general political agreement to seal a free trade pact. However, the resolution of some technical aspects remained pending and, in the last year, negotiations were reopened due to the new environmental demands presented by the Europeans.
For the industry, the “rapid strengthening” of the bloc in the face of the new realities of the global economy, which has transformed production models and trade relations, “is crucial” for the regional bloc.
In his video speech during the business forum, the Brazilian vice president and minister of Development, Industry and Commerce, Geraldo Alckmin, He highlighted the importance of private sector support to strengthen Mercosur. “In Mercosur we can still do much more to increase trade and the physical integration between member countries. Together we can grow bigger and better,” said Alckmin.
Is the agreement getting closer?
According to the Uruguayan expert Ignacio Munyoexecutive director of the study center specialized in public policies CERES, the ratification of the agreement between the European Union and the Mercosur could happen in the next few days. This was highlighted to the press this Tuesday after the presentation of the study titled: ‘What does Uruguay to advance on the path of development? Reflections in the run-up to the electoral year’.
“He Mercosur It is dynamic. There is a central aspect that is being played at this time, which is the agreement with the EU,” explained Munyo, who stressed that this will change the future of the bloc made up of Argentina, Brazil, Paraguay and Uruguay. The expert explained that if the agreement is finalized – something that he believes will happen – a broad agenda of other agreements will be opened that could seal the Mercosur and that they would be “very important” for their country.
“We are in important, critical hours for the future of the Mercosur”, Munyo assured the press, while detailing that if the agreement with the EU fails “the possibility of each country having greater independence in the commercial agenda“. Asked again if he believes that the agreement can be ratified this year, he noted that “the conditions are in place for it to be closed.”
On the other hand, Munyo stressed that the future of Uruguay “depends on Uruguay” and that the country must continue advancing on the path of development. “The uncertainty of Argentina is dissipating, but there is permanent doubt every day as to how far the new one will be able to advance in the promises. Government”, said the executive director of CERES, who also pointed out that the “very large” price differential that existed between both nations in recent years could be reduced.
Finally, he spoke about Uruguayan economy and reviewed that this year had “very low growth”, while pointing out that a recovery is expected next year, although knowing “that there is a international and regional context that is very fragmented, with low growth, that is not going to boost Uruguay as it usually does when it blows in favor”.
“Uruguay is on a good path, which is slower than it needs to be to advance on the development scale, but it needs to substantially improve the execution of public policies more than the design. How do the services that the State wants to impose or promote reach people,” she concluded.
Source: Ambito
