Since 1995, the European Union (EU) and the Mercosur countries (Argentina, Brazil, Paraguay, Uruguay) have been engaged in a negotiation process for the adoption of a free trade agreement.
The EU-Mercosur “region-to-region” agreement will remove the majority of tariffs on EU exports to Mercosur, making EU companies more competitive by saving them €4 billion worth of duties per year.
As regards as EU industrial sectors (automotive, machinery), it will help boost exports of EU products that have so far been facing high and sometimes prohibitive tariffs. The EU agri-food sector will benefit from slashing existing Mercosur high tariffs on EU export products (chocolates, spirits, etc.).
Mercosur countries will also put in place legal guarantees protecting from imitation 357 high-quality European food and drink products recognised as Geographical Indications (GIs).
Both sides will now perform a legal revision of the agreed text to come up with the final version of the Association Agreement and all its trade aspects. The Commission will then submit the Association Agreement to EU Member States and the European Parliament for approval.