The EU-Mercosur Interim Trade Agreement enters into force on a provisional basis on Friday, bringing immediate and tangible benefits to businesses, workers, and citizens in the EU. To mark the occasion, European Commission President Ursula von der Leyen will join European Council President António Costa in a video conference with Mercosur leaders.
“A great deal of effort has gone into securing this landmark agreement across the negotiating table. Now is the time to invest the same effort to ensure that our citizens and businesses immediately reap its benefits. From day one, tariffs are reduced and new market opportunities open up. This is good news for EU businesses of all sizes, good news for our consumers, and good news for our farmers, who will gain valuable new export opportunities while remaining fully protected in sensitive sectors. Tomorrow I will speak with all four Mercosur leaders to celebrate this important day and to reiterate the need for maximum effort to realize its tremendous potential. “This is a good day for Europe’s competitiveness, resilience, and strategic positioning—the EU’s trade agenda is once again delivering results for us,” said Ursula von der Leyen, President of the European Commission, as quoted in a press release.
According to data provided by the EC, the agreement will gradually eliminate import duties on over 91% of EU goods exported to Mercosur, opening up a common market of over 700 million people.
Starting Friday, the agreement will eliminate or drastically reduce tariffs on key EU exports, such as cars, pharmaceuticals, wine, spirits, and olive oil, immediately creating new opportunities for EU businesses in one of the world’s largest trading areas.
“EU farmers and agri-food producers will also see lower or eliminated tariffs, making their products more competitive in Mercosur. The agreement is expected to increase EU agri-food exports to the region by 50%, with the first tariff quotas and reductions set to take effect on Friday,” the Commission states in the cited press release.
In addition, 344 European geographical indications (GIs), such as Parmigiano Reggiano and Bordeaux, will benefit from legal protection in Mercosur, preventing their imitation in this growing consumer market.
At the same time, sensitive EU agri-food sectors benefit from all necessary protective measures thanks to carefully calibrated tariff quotas, an unprecedented safeguard mechanism, and strengthened controls.
“May 1 also marks the start of the removal of non-tariff and technical barriers to trade, as rules on conformity assessment, labeling, and compliance with international standards begin to apply. This will ensure that EU businesses can operate more easily and quickly. Public procurement markets will also open up, allowing EU companies to bid for federal and state government contracts on an equal footing with local competitors,” EC officials added.
In addition, service exporters—in sectors such as finance, IT, and transportation—will immediately benefit from clearer licensing rules, non-discriminatory procedures, and the free movement of workers.
It is estimated that, by 2040, these combined benefits will boost the EU’s annual exports to the Mercosur region by 39%, reaching 50 billion euros.
The provisional application follows the Council’s January decision to authorize the Commission to provisionally apply the agreement upon the first ratification by a Mercosur country.
On February 27, von der Leyen announced that the EU would proceed with provisional application.
Source: News.ro
