On September 3, the European Commission presented the official text of the agreement between the EU and Mercosur to the Member States and the European Parliament. The latest version of the partnership includes ratifications designed to protect sensitive sectors.
Mercosur: an economic partnership
Today, the EU is Mercosur's second-largest trading partner. In 2024, European companies exported 55 billion euros worth of goods, and in 2023, 29 billion euros worth of services to the region.
However, high import duties, complex procedures and norms that differ from international standards are still holding back the expansion of European business in the South American economic alliance.
The main points of the agreement
The agreement aims to phase out tariffs on around 91% of European exports, and 92% of Mercosur exports.
European products are particularly affected by tariffs on sectors such as cars, machinery, IT equipment, chocolate, wine and spirits.
For Mercosur, the agreement provides for the removal of administrative barriers and customs duties on agri-food products, machinery, pharmaceuticals, cars and textiles.
Quotas have been set for sensitive agri-food products:
- Mercosur will grant the EU a duty-free quota of 30,000 tonnes of cheese,
- The EU will open its market to a further 99,000 tonnes of beef.
In addition, to combat the counterfeiting of traditional food specialties, the agreement recognizes 350 protected geographical indications. Among them, Roquefort, Parmigiano Reggiano, as well as several European wines and spirits, will benefit from enhanced protection. Safeguard clauses are also included.
What's next?
After 25 years of negotiations, the agreement is reaching its final phase. Several member states, notably France and Austria, have reservations about the agreement, believing that the safeguard clauses provided for would be insufficient to protect European agricultural markets.
The text is currently being analyzed by Parliament and the Member States, and its adoption will depend on the next steps in the process.
Article written by Zilene ALMEIDA PESSOA, Trade Compliance & Data Analytics Project Manager at MyTower
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Sources :
https://ec.europa.eu/commission/presscorner/detail/fr/qanda_24_6245
