The EU is facing a crucial turn: finally Mercosur Agreement in sight!

The EU is facing a crucial turn: finally Mercosur Agreement in sight!

Negotiations on the EU Mercosur Agreement are on the verge of completion and could finally lead to a result after more than 25 years. The EU Commission President Ursula von der Leyen and the commissioner of the commissioner Maroš Šefčovič have announced that they are actively working on the final elaboration of the agreement at the Mercosur summit in Montevideo. According to the Leyen, "the finish line of the EU Mercosur agreement is in sight". A final agreement could bring significant economic advantages for both regions, including the mining of tariffs to European exports to Argentina, Brazil, Paraguay and Uruguay, which could reach up to 91 percent, such as Euractiv.de reported.

Economic advantages and strategic opportunities

Industry in Europe is optimistic and demands a rapid conclusion of the agreement. Thanks to the agreement, European companies could save up to 4 billion euros annually. This would be particularly important for Austria, where the economic relationships with the Mercosur region have already secured more than 32,000 jobs. Christoph Neumayer, General Secretary of the Industrial Association, emphasizes the need to reduce trade barriers: "A rapid conclusion would be a clear signal for strengthening the economy and for sustainable cooperation," so ots.at.

However, there are also challenges that could endanger the conclusion of the agreement. France and Poland in particular form as a resistance to the agreement, from concerns about the effects on their agricultural sector, especially with regard to the import of cheap agricultural products from South America. Despite these political turbulence, the EU Commission will continue to negotiate in order not to leave the economic opportunities that the agreement offers.