European Union and Mercosur member countries concluded longstanding negotiations

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.

Comments are closed.