European Commission approves EU-MERCOSUR free trade agreement

European Commission (EC) President Ursula von der Leyen. (Photo: THX/TTXVN)

Presenting the agreement, European Commission President Ursula von der Leyen affirmed that EU businesses and the EU agri-food industry will immediately benefit from reduced tariffs and costs, contributing to economic growth.

European Council President Antonio Costa also stressed that the agreement would be a “great opportunity” to strengthen the “EU's competitiveness and open up markets to new products and services.

Under the deal, MERCOSUR countries will gradually eliminate import tariffs on 91% of EU goods, including cars, chemicals, wine and chocolate, which currently face tariffs of up to 35%.

According to Brussels, the agreement will help European exporters save more than 4 billion euros ($4.6 billion) in tariffs each year in Latin America.

The European Commission estimates the deal would increase EU exports to MERCOSUR by up to 39%, or 49 billion euros ($57 billion), annually, and give Europe an advantage over China and other countries vying for influence in the region.

In return, agricultural giant Brazil and its neighbors would be able to sell meat, sugar, honey, soybeans and other products to Europe with fewer restrictions.

By ratifying the deal, the EC has taken the first formal step before presenting the free trade agreement to the 27 member states and European parliamentarians.

The text needs to be approved by at least 15 EU member states – and the European Parliament – to be formally adopted. However, the ambitious deal is facing opposition from France, which fears that cheap agricultural goods from across the Atlantic will undermine European agriculture.

To reassure Paris, Brussels plans to supplement the agreement with a “legal text” to strengthen safeguards for “sensitive European products.”

The EC has pledged to intervene if imports have a negative impact on sectors such as beef, poultry, sugar and ethanol. In response, the French Trade Minister said the EU-MERCOSUR trade deal was on the right track.

Meanwhile, the battle to ratify the deal in the European Parliament is expected to be tough. One of the most sensitive points concerns sanitary and environmental standards, with European farmers accusing South American rivals of failing to comply with EU standards due to a lack of effective control mechanisms.

However, the agreement with MERCOSUR also won a lot of support, first of all from Germany - a country that wants to expand the market for industrial enterprises. Meanwhile, Italy expressed a cautious attitude, saying that it needed to consult with relevant parties before approving the agreement.

Over the past year, the EU has launched trade deal negotiations with the United Arab Emirates and Malaysia, and held summits with India and South Africa, among other initiatives.

According to EU officials, in the current unstable geopolitical context, diversifying supply chains and strengthening partnerships with reliable allies, partners and friends has become “essential”./.

According to VNA

Source: https://baothanhhoa.vn/uy-ban-chau-au-phe-chuan-hiep-dinh-thuong-mai-tu-do-eu-mercosur-260514.htm