Mercosur-European Union agreement could yield between US$85 billion and US$125 billion over 15 years

The trade agreement between the group of South Americans and the European bloc was closed in June 2019, after 20 years of negotiations. The text predicts that, within a period of up to 15 years, more than 90% of product trade between the countries that make up the two economic blocs will have zero import taxes.

Some details, such as issues related to the environmental agenda, are still under discussion. According to the Minister of Foreign Affairs, Mauro Vieira, at the end of April the Europeans sent an additional document as a requirement for the agreement to be signed. The proposal was considered “hard” and “difficult” by the Chancellor, who intends to discuss the terms with other Mercosur partners.

Minister Mauro Vieira stated that the Brazilian government is committed to concluding the agreement on the 10th, during the launch of the Joint Parliamentary Front for International Trade and Investment (FrenComex), at the Itamaraty Palace. “We are committed to finalizing the negotiations for the agreement between Mercosur and the European Union, seeking to ensure the balance of the instrument.”
For senator Nelsinho Trad (PSD-MS), president of the Senate Commission on Brazilian Representation in the Mercosur Parliament, it is normal that the talks for the conclusion of the agreement are not as fast as they could be, because of the number of countries involved in the negotiations.

“An agreement between two countries is not easy. It takes time. Imagine an agreement between two groups of countries. There must be tolerance, justifiable patience so that it can be processed in the parliaments of each country involved, so that this issue can be properly exhausted”, he says.

Brazil is engaged in concluding the agreement between Mercosur and the European Union, says minister

Composition

The European Union is made up of 27 countries. They share a single common currency, the euro, and citizens and goods from the 27 countries can move freely between the bloc’s members. But the partnership extends beyond the economy. In the field of political decisions, the European Parliament, the legislative body of the European Union, stands out.

Mercosur now comprises four member countries: Argentina, Brazil, Paraguay and Uruguay. Venezuela, which was also a member of the bloc, was suspended in 2017 by the other countries for “rupture of the democratic order”.