Trade Agreement Eu Mercosur
The agreement will create the necessary conditions for European consumers to choose from a wider and more affordable range of products and services. On the EU`s trade agreement with Mercosur With more than 260 million consumers and an annual GDP of €2.2 trillion, Mercosur is the fifth largest economy outside the EU. If the process is successful, the trade agreement will be the largest the EU has concluded for the affected population (780 million people) and one of the largest in terms of the volume of trade covered (€40-45 billion in imports and exports). The agreement aims to promote the exports of European companies in the automotive, chemical, pharmaceutical and clothing sectors and to offer them better access to public procurement markets in the Mercosur countries. In return, companies established in Mercosur, particularly in the agri-food industry, would benefit from greater outlets on the European market for their production, including beef, poultry, sugar/ethanol, etc. French President Emmanuel Macron has already hesitated to conclude the agreement last August. This year, the French government requested new environmental guarantees after commissioning a study that examined the impact of the trade agreement on sustainable development. The Ambec report published in September concluded that the agreement would likely increase deforestation and damage biodiversity. Given the EU`s objective of pursuing a trade policy based on values such as sustainable development, importing more deforestation products – such as soybeans or mining raw materials – would be contrary to the EU`s values and reputation in Switzerland and abroad. The EU is Mercosur`s main trade and investment partner. EU exports to Mercosur amounted to €41 billion in 2019 and €21 billion in 2018 for services.
Another scenario would be to instruct the Commission to completely renegotiate the agreement. That would be a difficult task, because it took twenty years to reach the first agreement. In addition, the Mercosur countries should also agree on renegotiation. The agreement came after twenty years of negotiations. Talks began in 1999, but stagnated before regaining momentum in 2016.  The talks had failed for years due to opposition from European beef producers, especially small farmers, who feared being underestimated by imports from Brazil, the world`s largest beef producer.  Many South American governments at that time preferred «South-South cooperation» to building relations with Europe, while European governments also had other priorities.  Several national parliaments, including those of Austria, the Netherlands and Ireland, voted against the agreement. Luxembourg refused to give its support, as did France and Italy. In a non-binding resolution of 7 October, the European Parliament also voted against the agreement with Mercosur as it stands. .