EU-Mercosur Partnership Agreement: A Landmark Free Trade Area

Strategic Insights -

The European Commission has presented to the Council its proposal for the signature and conclusion of the EU-Mercosur Partnership Agreement, a historic agreement aimed at diversifying the EU's trade relations and strengthening economic and political ties with Mercosur. This partnership will create the world's largest free trade area, covering a market of over 700 million consumers, and will benefit both Mercosur and the EU by promoting economic growth, competitiveness, and jobs. The agreement also reaffirms the joint commitment to human rights, multilateralism, and international peace and security, and will strengthen cooperation on sustainable development.

Key Takeaways:

  • The EU-Mercosur Partnership Agreement will create the world's largest free trade area, covering a market of over 700 million consumers.
  • The agreement will benefit both Mercosur and the EU by promoting economic growth, competitiveness, and jobs, supporting hundreds of thousands of jobs.
  • The majority of Brazilian exports to the EU consist of industrial goods, such as aircraft, far more than commodities and raw materials.
  • The agreement will gradually open up new opportunities, giving Mercosur's industry time to modernize, grow, and compete.
  • The EU continues to be the leading foreign investor in Brazil, with an investment portfolio exceeding EUR475 billion.
  • The agreement will foster investment, helping Brazil achieve its goal of reindustrialization and combating poverty and inequality by promoting sustainable production chains.
  • The agreement guarantees channels for civil society to express itself and monitor its impacts, ensuring transparency and inclusion.
  • The EU is preparing a cooperation package with projects whose priorities will be defined jointly with Mercosur to support the implementation of the agreement.
  • The agreement will facilitate the integration of small and medium-sized enterprises into global chains and public procurement.

Statistics:

  • The agreement will cover a market of over 700 million consumers.
  • Brussels: The European Union's annual trade flows with Brazil reach EUR89.5 billion.
  • The EU is the leading foreign investor in Brazil, with an investment portfolio exceeding EUR475 billion.
  • The agreement will create new opportunities for Mercosur's industry to modernize, grow, and compete.

Sources:

  • European Commission: "EU-Mercosur Partnership Agreement: A Landmark Free Trade Area" (no date)
  • European Union External Action Service: "EU-Mercosur Partnership Agreement: Enhancing Economic and Political Ties with Strategic Partners" (no date)