EU – Mercosur Trade Agreement

EU – Mercosur Trade Agreement

*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.

(*Extract from ec.europa.eu)

The UK benefits from trade with the Mercosur area. The image below provides an overview of current trading levels and a link to find out more including some useful fact sheets and video.Mercosur.

 

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