Eu Mercosur Free Trade Agreement Text

15 maig Eu Mercosur Free Trade Agreement Text

The EU-Mercosur Free Trade Agreement Text: What You Need to Know

On June 28, 2019, the European Union and the Southern Common Market, known as Mercosur, reached a historic agreement to establish a free trade zone between the two regions. The agreement has been long-awaited and aims to boost economic growth, increase competitiveness, and support sustainable development.

But what exactly does the EU-Mercosur Free Trade Agreement Text entail, and why is it significant? Let`s take a closer look.

The Basics

The EU-Mercosur Free Trade Agreement Text covers a wide range of areas, including trade in goods and services, intellectual property, government procurement, and sustainable development. It is one of the largest trade agreements ever negotiated, covering a market of over 780 million people and representing a combined GDP of 19 trillion euros.

Under the agreement, tariffs will be eliminated on 93% of Mercosur`s exports to the EU, which includes a wide range of products such as beef, poultry, sugar, and ethanol. The remaining 7% will be subject to limited tariff reductions over a transition period.

In return, Mercosur will eliminate tariffs on 91% of EU exports to the region, including cars, pharmaceuticals, and machinery. The remaining 9% will also be subject to limited tariff reductions.

Benefits and Challenges

The EU-Mercosur Free Trade Agreement Text is expected to bring several benefits to both regions. For the EU, it will provide access to new markets, increase trade, and boost economic growth. For Mercosur, it will offer new opportunities for exports, attract foreign investment, and promote job creation.

However, the agreement also faces several challenges, particularly in terms of the environmental and social impact. Critics argue that the agreement could lead to an increase in deforestation, particularly in Brazil, which is a member of Mercosur. There are also concerns regarding labor rights and human rights violations in some of the Mercosur countries.

Sustainable Development

To address these concerns, the EU-Mercosur Free Trade Agreement Text includes a chapter on sustainable development. This chapter aims to promote environmental protection, social and labor rights, and sustainable economic growth.

Under this chapter, both regions commit to implementing and enforcing environmental and labor laws, promoting sustainable management of natural resources, and supporting responsible business practices. The agreement also includes a mechanism for resolving disputes related to sustainable development issues.

Conclusion

The EU-Mercosur Free Trade Agreement Text is a significant development in the world of international trade. It represents a major step towards increased economic cooperation between the EU and Mercosur and offers new opportunities for businesses and consumers in both regions.

However, the agreement also faces several challenges, particularly in terms of environmental and social impact. It will be important for both regions to ensure that the sustainable development chapter is fully implemented and enforced to address these concerns.

Overall, the EU-Mercosur Free Trade Agreement Text is a positive development for both regions, but its success will depend on the ability of both parties to address the challenges and to promote sustainable economic growth and development.