EU is facing a decisive turning point: Mercosur agreement finally in sight!

EU is facing a decisive turning point: Mercosur agreement finally in sight!

The negotiations on the EU-Mercosur agreement are nearing completion and could finally lead to a result after more than 25 years. EU Commission President Ursula von der Leyen and Trade Commissioner Maroš Šefčovič have announced that they will be actively working on the final draft of the agreement at the Mercosur summit in Montevideo. According to von der Leyen, “the finish line of the EU-Mercosur agreement is in sight”. A final deal could bring significant economic benefits to both regions, including the elimination of tariffs on European exports to Argentina, Brazil, Paraguay and Uruguay that could reach up to 91 percent, like euractiv.de reported.

Economic advantages and strategic opportunities

Industry in Europe is optimistic and is calling for the agreement to be concluded quickly. Thanks to the agreement, European companies could save up to 4 billion euros annually. This would be particularly important for Austria, where economic relations with the Mercosur region already secure more than 32,000 jobs. Christoph Neumayer, Secretary General of the Industrial Association, emphasizes the need to reduce trade barriers: “A quick conclusion would be a clear signal for strengthening the economy and for sustainable cooperation,” said ots.at.

However, there are also challenges that could jeopardize the conclusion of the agreement. France and Poland in particular are emerging as opposition to the agreement due to concerns about the impact on their agricultural sector, particularly the importation of cheap agricultural products from South America. Despite this political turbulence, the EU Commission will continue to negotiate decisively in order not to miss the economic opportunities that the agreement offers.