The agreement between Mercosur and the European Union (EU) It was consolidated this Friday in Montevideo, within the framework of the 65th Summit of Heads of State of the South American commercial bloc. The pact will increase investments and exports in Argentinawith a great impact on both the economy and local jobs.
The EU is one of the main global markets. It makes 14% of global purchases of goods and services that represent 72% of its GDP. Until today, More than 14% of Mercosur’s total exports were destined for the European Union and 20% of what was imported by regional consumers was of European origin..
The products that will benefit
The agreement, which took more than 25 years of negotiation, was finally able to come to fruition despite France’s reluctance. The same brand the consolidation of a market for goods and services of more than 700 million consumers. It will mainly reward the products citrus, of sea and meat.
Likewise, it will guarantee the stability of access rules while avoiding discriminatory or protectionist measures. The EU will eliminate tariffs for 92% of Mercosur exports; and for its part, the South American bloc will eliminate tariffs for 91% of imports made from the EU.
Regarding the benefits for Argentine manufacturing, there will be a reduction in tariffs on certain products and the free trade regime will be applied for themwhile others will obtain comparative advantages for their export.
The citrus, vegetables and cotton They will be governed by free trade, to be implemented gradually over a period of 4 to 10 years. In the case of the national winesthe European Union will reduce tariffs until they are completely eliminated within a period of 8 years.
The historic agreement
The President of the Republic, Luis Lacalle Pourepresenting all member countries of the Mercosur announced the agreement between the South American bloc and the European Union (EU): “The first thing I want to clarify is that it is not just a commercial exchange, which it is, perhaps more importantly for our countries with smaller economies, but there are some connections with Europe that unite us beyond and we have to value and understand that. “said Lacalle Pou, who told how each of the presidents of the countries of the region felt. Mercosur Regarding the pact: “Santiago Pena He said that ‘he is not satisfied, but he is enthusiastic.’ Lula da Silva that ‘it is a historic day’. Xavier Milei that ‘this moment is transcendent,'” he added.
“An agreement of this type is not a solution, it is an opportunity and it depends on the speed that each country gives it, it is important that the steps be small, but firm,” he stressed. ”In some summits I commented that I have 20-year-old children who, when they found out that an agreement had taken 25 years of negotiation, could not understand it. Today I’m going to return home a little calmer,” said Lacalle Pou.
”It is illogical that countries cannot understand each other in these cases of time, he said that the sum of frustrated agreements was not only that tool in itself, but also that it did not generate trust,” the president recalled about his repeated criticisms of the delays in the pact.
For her part, the president of the European Commission (EC, executive body of the EU), Ursula von der Leyenhighlighted the work of “an entire generation” and called for honoring what was agreed, in a message to his European compatriots. “Today is a truly historic milestone,” he stressed.
Source: Ambito
