The EU-Mercosur Agreement in Principle: What You Need to Know
The EU-Mercosur Agreement in Principle, also known as the EU-Mercosur Free Trade Agreement, is a trade treaty between the European Union (EU) and the South American trade bloc Mercosur. The agreement was finalized in June 2019 after more than two decades of negotiations.
The EU-Mercosur Agreement in Principle aims to eliminate tariffs on a wide range of products, including industrial goods, agricultural products, and services. The treaty would create a market of nearly 800 million people, with a combined GDP of around €19 trillion. It is expected to boost trade between the EU and Mercosur countries by around 20%.
The agreement has faced criticism from environmental and social groups due to concerns about deforestation in the Amazon Rainforest and the impact on local farmers. The EU has included a sustainability chapter in the agreement, which includes commitments to uphold environmental standards and human rights. However, critics argue that the measures are not strong enough to mitigate the potential negative impacts on the environment and local communities.
The agreement still needs to be ratified by all EU member states and the European Parliament before it can take effect. Some countries, such as France and Ireland, have expressed reservations about the deal, citing concerns about the impact on their domestic industries and environmental standards.
Supporters of the deal argue that it will bring economic benefits to both the EU and Mercosur countries, creating jobs and boosting growth. They also point out that the agreement includes provisions to protect intellectual property rights, which will benefit European companies.
Overall, the EU-Mercosur Agreement in Principle has the potential to create a new trade landscape between Europe and South America, with significant economic benefits. However, the deal must also address concerns about environmental and social impacts, and ensure that it upholds high standards of sustainability and human rights.