Brazil and World
Mercosur and European Union sign free trade agreement
After 20 years, last Friday, the 28th, a free trade agreement was signed between Mercosur and the European Union. These blocks together represent a market for goods and services of 780 million consumers and almost ľ of world GDP.
Among the main impacts is the reduction or elimination of import tariffs. About 93% of Mercosur's exports will have zero tariffs and this will positively reflect in the Brazilian exports of different products, including beef, pork and poultry. In addition, the agreement eliminates non-tariff barriers and facilitates exports, adjusting deadlines and procedures to improve market access and greater predictability and regulatory transparency by reducing physical inspections, harmonizing customs procedures, and so on.
According to the Brazilian Confederation of Agriculture and Livestock (CNA), the agreement provides other benefits as a political, economic, strategic and permanent link between Mercosur and EU; simplifies business operations procedures and reduces or eliminates trade restrictions; and opens the door so that other agreements can be concluded soon and other negotiations are launched for the benefit of agribusiness.
After the review and translation, the agreement should still be approved by the National Congress in Brazil and, in the European Union, by the European Parliament.