These partnerships will create billions of euro's worth of export opportunities for European Union (EU) companies of all sizes, contribute to economic growth and competitiveness, support hundreds of thousands of European jobs, and promote EU interests and values.
They will strengthen value chains, and help the EU to widen its range of reliable sources for critical inputs and raw materials.
“Both agreements reaffirm our joint commitment to human rights, multilateralism and international peace and security. They will also reinforce our engagement on key issues such as sustainable development, transnational organised crime and migration,” an official release from the Commission said.
The deal with Argentina, Brazil, Paraguay and Uruguay (EU-Mercosur Partnership Agreement) will create the world's biggest free trade zone, covering a market of over 700 million consumers. EU firms will enjoy first-mover advantage, benefitting from lower tariffs in a region where most other countries face high tariffs and other barriers to trade.
It is estimated the agreement can increase EU annual exports to Mercosur by up to 39 per cent (€49 billion), supporting more than 440,000 jobs across Europe. It will reduce often prohibitive Mercosur duties for EU exports, including on key industrial products.
The agreement will make it easier for EU companies to invest in key supply chains, including for critical raw materials and related goods, all with a high level of environmental and labour protection. This can play a pivotal role in advancing the green and digital economic transformations of both regions, while ensuring predictable and stable supply chains, the release noted.
The new agreement with Mexico will further support economic growth and boost competitiveness on both sides. Mexico is one of the EU's longest standing trading partners and second biggest trading partner in Latin America, with the original agreement dating back to 2000.
The EU exports over €70 billion's worth of goods and services to Mexico every year under the existing trade deal, supporting over 630,000 EU jobs.
The EMPA and the MGA require separate approval by the European Parliament and Member States before they each can enter into force.
ALCHEMPro News Desk (DS)
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