The European Commission estimates that by 2040, annual EU exports to South America will increase by 39%, reaching EUR 50 billion. The agreement, which was opposed by, among others, France and Poland, will be applied provisionally.
The EU authorities want to open the markets of South American countries to European industrial goods, including cars, as soon as possible. The countries concerned are: Argentina, Brazil, Paraguay and Uruguay.
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From Friday, these countries will abolish or reduce customs duties, including: for cars, pharmaceutical products, wine, spirits and olive oil. Customs duties on other products will be reduced gradually, and ultimately Mercosur will eliminate tariffs by over 91%. goods exported from the EU.
“A lot of work has gone into finalizing this landmark agreement. Now is the time to put the same effort into ensuring that our citizens and businesses experience its benefits immediately, von der Leyen said in a statement.
Farmers fear the effects of Mercosur
The head of the European Commission said that the entry into force of the agreement is also good news for both enterprises and consumers, as well as for EU farmers. The European Commission believes that farmers will be able to benefit from the agreement by increasing exports of agri-food products from the EU to the region by 50%. EU agriculture is also to benefit from the legal protection that Mercosur countries have undertaken to introduce to products with a geographical indication – such as Parmigiano Reggiano cheese or Bordeaux wine. This is to prevent counterfeiting.
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However, farmers see the agreement with Mercosur as a threat because it will enable products such as beef, poultry, dairy products, sugar and ethanol to be imported into the EU at tariffs that are more favorable to South American producers.
Von der Leyen promised that farmers would gain new export opportunities, while at the same time sensitive sectors in EU agriculture would be protected.
