A comprehensive free trade agreement between the EU and the Mercosur, which consists of Argentina, Brazil, Paraguay and Uruguay, was concluded ten days ago.
The EU agri-food sector will benefit from a drastic reduction of Mercosur’s existing high tariffs on EU export products, including chocolates and confectionery (20%), wines (27%), spirits (20 to 35%), and soft drinks (20 to 35%).
The agreement will also provide duty-free access subject to quotas for EU dairy products (currently 28% tariff), notably for cheeses.
Alexander Anton, secretary general of the European Dairy Association (EDA), commented: “In today’s troubled international trade arena, this is a real breakthrough that underlines the trade ambitions of the European Union and the performance focus of the negotiation teams. The clear commitment of the negotiation partners to the Paris Agreement is… a milestone.”
The new trade framework is part of a wider Association Agreement between the two regions, and aims to both consolidate their strategic political and economic partnership, and create significant opportunities for sustainable growth on both sides. It will affect more than 780 million citizens.
© FoodBev Media Ltd 2019