EU And Mercosur Countries Reach Free Trade Agreement
Date
12/6/2024 3:04:50 PM
(MENAFN- Kuwait News Agency (KUNA))
BRUSSELS, Dec 6 (KUNA) -- European Commission President Ursula von der Leyen announced on Friday that the European Union and the Mercosur group of countries have concluded negotiations on a free trade agreement.
In a press statement, von der Leyen stated that "the agreement is mutually beneficial and will bring real benefits to consumers and businesses on both sides," while emphasizing that the EU "listened to the concerns of its farmers and took action on them."
The statement noted that this accord is the largest of its kind in terms of protecting European food and beverage products, highlighting that more than 350 European products are now protected under geographical indications. It also stressed that European health and food safety standards are non-negotiable, and exporters from Mercosur countries will have to comply with these standards to access the European market.
Von der Leyen added that the agreement would provide European businesses with an annual saving of 4 billion euros in export duties. It will also contribute to the removal of high tariffs on EU exports to Mercosur.
Furthermore, the accord is expected to strengthen strategic trade and political ties, support economic growth, enhance competitiveness, and bolster resilience on both sides by opening trade and investment opportunities and securing sustainable access to raw materials. It is also seen as a significant step in combating climate change through strong, measurable commitments to halt deforestation.
According to the EUآ's statement, the conclusion of negotiations is the first step in finalizing the agreement. Official documents will be published online in the coming days after final legal review by both sides, followed by the translation of the agreement into all official EU languages before being submitted to the Council and Parliament.
The two parties began negotiations in 1999 with the aim of removing most import tariffs and creating a free trade area covering 700 million consumers. The Mercosur group was established in 1991 and includes five countries; however, with Venezuelaآ's membership suspended due to its democratic backslide, the agreement covers only the four founding members: Argentina, Brazil, Paraguay, and Uruguay.
According to EU documents, South American countries are seeking to meet European demand for beef, poultry, sugar, rice, and other basic goods, in addition to minerals such as lithium, copper, and cobalt's key components in the shift towards clean energy. The European Union, which consists of 27 countries, aims to expand its market for cars, machinery, and pharmaceutical products.
The two parties reached a preliminary agreement in 2019, but opposition in some parts of Europe hindered its ratification.
However, the agreement still requires approval from 15 out of the 27 EU member states, representing 65% of the EU population, as well as approval from the European Parliament. (end)
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