How the agreement between Mercosur and the EU will redefine global trade

The historic union between Mercosur and the EU promises to revolutionize trade, strengthen economies and combat climate change in an unprecedented way

Today, the president of European Commission, Ursula von der Leyenand the presidents of the four countries of Mercosur—Lula (Brazil), mercy (Argentina), Peña (Paraguay) and Lacalle For (Uruguay)—negotiations for a partnership agreement between European Union (EU) and the Mercosur. The agreement, which represents a milestone in commercial and geopolitical relations, promises to benefit consumers, companies and sustainability, with emphasis on the impact on trade, environmental protection and food security.

“Advantageous agreement for both sides”

To president Ursula von der Leyen described the agreement as a victory for allemphasizing that it will bring concrete benefits for consumers and companies on both sides. According to her, the EU and Mercosur focused on justice and no mutual benefitin addition to listening to the concerns of European farmersensuring that your needs were met throughout the negotiations.

She said: “This is a win-win deal, with clear benefits for consumers and businesses. We act responsibly to ensure the protection of EU farmers, including robust safeguards for their livelihoods.”

EU product protection and food safety standards

The agreement includes a significant protection for more than 350 European Union food and drink products which are now protected by geographical indication. Traditional products like Champagneo alleged of Parma and the Feta cheese are among those whose production and commercialization will be protected globally.

Furthermore, the European Union health and food safety standards remain unchanged. This means that Mercosur exporters will need to strictly comply with demanding European standards to gain access to the EU market.

“Mercosur exporters will have to strictly comply with these standards to access the EU market,” stated Ursula von der Leyen, highlighting the importance of these safety standards.

Sustainability and combating deforestation

This agreement comes at a critical time for both blocs, with a strong emphasis on combating climate change by you environmental preservation.

One of the central commitments of the agreement is the reduction of deforestation in the Amazon region and other vulnerable areas of Mercosur.

The pact includes specific and measurable commitments to stop deforestation, which is considered a major advance for environmental sustainability in the region.

According to the agreement, both blocs committed to act together in environmental protection, establishing goals for the sustainable use of resources and promoting responsible agricultural practices.

Economic impacts: Growth opportunities and market access

O EU-Mercosur agreement also has a strong potential to boost trade and competitiveness of both blocks.

For the EU, the agreement will represent a savings of €4 billion in export tariffs annually, with the elimination of several commercial tariffs.

Mercosur countries will have expanded access to market of 450 million consumers of the European Union, which should significantly boost its economies and attract investment.

Strengthening geopolitical relations

In addition to commercial gains, this agreement also offers a strategic opportunity to strengthen the geopolitical relations between a UE and the Mercosurboth blocks with common democratic values.

By joining forces, both sides have the potential to become stronger partners on the global stage, with greater economic, political and sustainability security.

Considerations on the EU agricultural sector

The agreement also takes into account the European Union’s agricultural sector, allowing the bloc to increase its exports of agri-food products to Mercosur, while protects the most sensitive sectors of EU agriculture.

This balance is crucial to ensure that the economies of both blocs benefit without compromising food security and farmers’ interests.

Commitments to health and food safety

Finally, the agreement reinforces the need to ensure that European Union health and food safety standards remain unchanged, preventing unsafe products from entering the EU market.

This means that Mercosur products will have to follow strict quality and food safety controls to guarantee the health of European consumers.

This historic agreement marks a new chapter in commercial relations between the European Union and the Mercosurwith the promise of transforming economies and ensuring a brighter future sustainable, fair e competitive for both blocks.