On 28 June 2019, the European Union and Mercosur member countries Argentina, Brazil, Paraguay and Uruguay concluded longstanding negotiations on a landmark trade agreement.
The current EU bilateral trade with Mercosur already totals €88 billion a year for goods and €34 billion for services. The EU exports to Mercosur goods worth €45 billion a year and imports Mercosur products of nearly the same value (€43 billion). When it comes to services, the EU exports more than twice as much as it imports: €23 billion of services supplied by EU firms to clients in Mercosur versus €11 billion in services delivered to EU clients by firms from Mercosur countries.
EU companies will benefit from privileged access to a market of over 260 million consumers. EU exporters will gain from progressive tariff cuts that over time will bring European companies yearly savings of more than €4 billion.
The agreement will, over time, remove duties on 91% of goods that EU companies export to Mercosur. For example, Mercosur countries will remove high duties on industrial products, such as:
- Cars (taxed today at 35%)
- Car parts (taxed at 14 to 18%)
- Machinery (taxed at 14 to 20%)
- Chemicals (taxed up to 18%)
- Clothing (taxed at up to 35%)
- Pharmaceuticals (taxed at up to 14%)
- Leather shoes (taxed at up to 35%)
- Textiles (taxed at up to 35%)
The agreement will also progressively eliminate duties on EU food and drink exports, such as:
- Wine (taxed today at 27%)
- Chocolate (taxed at 20%)
- Whiskey and other spirits (taxed at 20 to 35%)
- Biscuits (taxed at 16 to 18%)
- Canned peaches (taxed at 55%)
- Soft drinks (taxed at 20-35%)
The agreement will also eliminate import duties on 92% of Mercosur goods exported to the EU.