The position for Mercosur within the EU remains unchanged, as negotiations continue to ensure further sustainability limits as part of the deal.
A senior official for the European Commission has said that political conditions have not yet been met, but it is a “moving target”.
The EU-Mercosur Trade Agreement was drawn up to increase volumes of trade for the EU and countries in South America.
Under the deal, it would allow the Mercosur countries of Brazil, Argentina, Paraguay, and Uruguay to export an additional 99,000t of beef tariff free to the EU.
Concerns
The EU’s trade agreement with Mercosur would remove trade barriers and make it easier for EU firms to sell goods and services to Mercosur and to invest.
Mercosur is the world’s fifth largest economy outside the EU. With a population of over 260 million, its annual output is over €2.2 trillion.
The EU Commission has stated that it is aware of farmer’s concerns, that the deal may expose farmers to low-cost competition from countries where they say environmental rules are much looser.
This idea of low-cost competition is part of the reason for a delay in the decision of the deal. It is expected that movement and decisions may be seen post elections in July this year.
Mercosur
EU exports reached €228.6 billion, with EU imports at €158.6 billion in 2023, resulting in a total surplus of €70.1 billion – according to commission.
This positive balance is mainly due to sustained high prices for EU export products paired with declining world prices for imported products.
The EU had been negotiating trade with Australia, but did not conclude on a deal, due to excessive requests on agriculture concessions.
Once an agreement has been made within the EU Commission, the text of the agreement will be published on the European Commission website.