*The European Union and Mercosur states – Argentina, Brazil Paraguay and Uruguay, reached on June 28th a political agreement for an ambitious, balanced and comprehensive trade agreement.
The EU is Mercosur’s number one trade and investment partner. EU exports to Mercosur were €45bn in goods in 2018 and €23bn in services in 2017.
The EU is the biggest foreign investor in Mercosur with a stock of €381 billion, while Mercosur’s investment stock in the EU amounts to €52 billion in 2017. While the relationship is very substantial both exporters and potential investors face barriers in Mercosur markets.
The goal of the new EU-Mercosur trade deal is to
- Remove these barriers and help EU firms – especially smaller ones – to export more
- Strengthen worker’s rights and ensure environmental protection, encourage companies to act responsibly, and uphold high food safety standards
- Protect quality EU food and drink products labelled as Geographical Indications from imitations
The agreement represents a win-win for both the EU and Mercosur, creating opportunities for growth and jobs for both sides.