Eu Agreement with Mercosur

The European Union (EU) and Mercosur have recently reached an agreement to create one of the world`s largest free trade areas. The EU-Mercosur Association Agreement, which took 20 years of negotiations, aims to promote trade, investment, and political cooperation between the two regions.

Mercosur, or the Southern Common Market, is a trading bloc made up of Argentina, Brazil, Paraguay, and Uruguay. Together, the four countries have a combined population of over 290 million people and a GDP of approximately $3.4 trillion. The EU, on the other hand, is a political and economic partnership of 27 European countries with a population of over 446 million people and a GDP of approximately $18.8 trillion.

The agreement will eliminate tariffs on over 90% of goods traded between the EU and Mercosur. It will also provide new opportunities for companies in both regions to access each other`s markets and compete on a level playing field. The agreement covers a wide range of sectors, including agriculture, automotive, chemical, and services.

However, the agreement has been met with criticism from various groups, including environmentalists and farmers. They argue that the agreement will lead to an increase in deforestation in the Amazon rainforest, as well as the importation of cheap, low-quality beef from Mercosur countries, which could harm European farmers.

In response to these concerns, the EU and Mercosur have agreed to a sustainable development chapter in the agreement. This chapter includes commitments to protect human rights, promote labor rights, and enforce environmental standards. The agreement also includes a safeguard clause that allows the EU to suspend trade preferences if Mercosur fails to comply with these commitments.

Overall, the EU-Mercosur Association Agreement is a significant milestone in the relationship between the EU and Mercosur. While it has its critics, the agreement has the potential to boost economic growth, create jobs, and strengthen political cooperation between the two regions. Its impact will be closely watched in the coming years to see if it delivers on its promises.