EU, MERCOSUR nations reach agreement on trade partnership

The MERCOSUR grouping comprises Argentina, Brazil, Paraguay and Uruguay.

The agreement will boost strategic trade and political ties, support economic growth, boost competitiveness and strengthen resilience on both sides by opening up trade and investment opportunities, securing sustainable access and processing raw materials, an official release from the Commission said.

It considers the interests of all Europeans, including the critically important EU farming sector. It will help increase EU agri-food exports while protecting sensitive sectors. It upholds the EU's standards on animal health and food safety, preventing unsafe products from entering the EU market.

The deal will secure and diversify EU supply chains; create new opportunities for all kind of businesses, by removing often prohibitive tariffs on EU exports to MERCOSUR nations; save EU businesses €4 billion worth of duties per year; ensure trade preferences in strategic net-zero industry sectors like renewable energy technologies and low-carbon fuels; help small and medium enterprises export more by cutting red tape; and secure an efficient, reliable and sustainable flow of raw materials critical for the global green transition.

It represents a major milestone in fighting climate change with strong, specific and measurable commitments to stop deforestation, the release added.

The end of negotiations constitutes the first step in the process towards conclusion of the agreement.

Fibre2Fashion News Desk (DS)