Agreement in Principle EU Mercosur: What You Need to Know
The European Union (EU) and the Mercosur bloc, which comprises Argentina, Brazil, Paraguay, and Uruguay, reached an agreement in principle in June 2019 after 20 years of negotiations. The deal aims to establish one of the world`s largest free-trade areas, covering a market of around 780 million consumers.
The agreement covers a wide range of topics, including the elimination of tariffs on 90% of traded goods, rules of origin, intellectual property rights, sustainable development, and dispute settlement. The deal is also expected to create new market opportunities, enhance trade and investment, and strengthen political and economic ties between the two regions.
However, the agreement has faced criticism from various groups, including farmers, environmentalists, and human rights organizations. Farmers are concerned about the impact of cheaper imports on their livelihoods, while environmentalists argue that the deal could lead to increased deforestation and carbon emissions, as well as harm biodiversity and indigenous communities. Human rights organizations have also raised concerns about the potential violation of labor rights, including forced labor and child labor.
Despite the criticism, the EU and the Mercosur bloc are optimistic about the deal. The EU regards the agreement as a significant achievement in its trade policy and as a demonstration of its commitment to multilateralism and open markets. The Mercosur bloc regards the deal as a way to diversify its export markets and reduce its dependence on big buyers, such as China and the United States.
The agreement in principle still needs to be translated into legal texts, and both sides need to agree on the final details. The deal will then need to be ratified by all EU member states and the European Parliament, as well as all Mercosur countries, before it can enter into force.
In conclusion, the agreement in principle between the EU and Mercosur is a significant step towards establishing one of the world`s largest free-trade areas. While there are concerns about the potential impact of the deal, the EU and Mercosur are committed to addressing these issues and ensuring that the agreement benefits all parties involved. It will be interesting to see how the final details of the deal are negotiated and ratified, and how it will ultimately affect trade and investment between the two regions.