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EU-Mercosur: leading trade MEPs welcome potential conclusion tomorrow
As talks on the trade pillar of the EU-Mercosur agreement could be concluded tomorrow, the Trade Committee Chair and the Standing Rapporteur for Mercosur issued the following statements.
“With the global economy potentially facing turbulent times in the near future, the current EU-Mercosur agreement would be a beacon of hope for the EU. Not only would it provide additional export opportunities, but it would also further anchor our political and economic relations with the Mercosur countries.
If concluded, the European Parliament will assess the economic impact of the agreement and review it in light of our commitment to sustainability and labour rights, also taking into account the contribution that, for example, the anti-deforestation regulation would have in addressing our climate concerns.
If we get there, reason should prevail over emotion. I therefore urge everyone to engage in a discussion based on facts. While this deal might not meet our highest ambitions and expectations, I believe the overall consequences of a no-deal would probably far outweigh the shortcomings of an imperfect agreement. We should not see this agreement in isolation but rather as being a symbol of our desired future place in the world”, said Bernd Lange (S&D, DE), Chair of the Committee on International Trade.
“The conclusion of the EU-Mercosur trade agreement would mark a historic milestone in strengthening the ties between two regions that share values and ambitions. It has been a long journey that would culminate in an agreement affecting over 700 million people. It would demonstrate the EU’s ability to lead in fostering sustainable, rules-based global trade.
The removal of 91% of tariffs would open unprecedented opportunities for European businesses, with benefits for key sectors such as automotive, pharmaceuticals, and agriculture, and would create significant economic growth and employment. At the same time, the agreement would reinforce Europe’s commitment to sustainability, including robust measures to combat deforestation and climate change.
The EU would send a clear signal that it prioritises partnerships with democratic allies and shared values, paving the way for a stronger, more resilient Europe on the global stage”, said Gabriel Mato (EPP, ES), Standing Rapporteur for Mercosur.
Next steps
Once concluded, the agreement would undergo a legal review, after which it will be translated into all official EU languages. When these steps are completed, the Commission will present it to the Parliament and EU Member States’ governments for approval. Parliament must give its consent for any trade agreement to be concluded and enter into force. MEPs would examine the agreement and vote on it firstly in the Committee on International Trade. Subsequently, the plenary would decide whether to approve or reject the agreement.
Background
A free trade agreement between the EU and the founding Members of Mercosur: Argentina, Brazil, Paraguay and Uruguay, would constitute the trade pillar of a wider EU-Mercosur Association Agreement that also includes provisions on political dialogue and cooperation. Although the negotiations were concluded in principle in 2019, they were reopened to address sustainability commitments. If ratified, the agreement would gradually remove duties on 91% of EU goods exports to Mercosur, including industrial and food products, and on 92% of Mercosur exports to the EU. Sensitive agricultural imports would be controlled via quotas, in-quota duties, extended phasing-in periods, and safeguards to address potential market disruptions. The agreement would also emphasise high sanitary and phytosanitary standards, ensuring there will be no lowering of food safety or environmental protection. It would also protect about 350 of the EU's geographical indications (GIs) on the Mercosur market. The agreement aims to strengthen ties between the regions, contribute to economic security, counter protectionism and unilateralism, and establish the EU's largest ever free trade zone, benefiting more than 700 million people thus making it geopolitically extremely significant.