EU-Mercosur trade agreement enters into force
Kyiv • UNN
The trade agreement between the EU and Mercosur entered into provisional force on May 1. It covers 720 million people and provides for the abolition of billions in customs duties.
A controversial large-scale free trade agreement between the European Union and the four Latin American countries of MERCOSUR provisionally entered into force on Friday, May 1. This was reported by DPA, according to UNN.
Details
The agreement, which was under negotiation for 25 years, aims to boost the exchange of goods and services by gradually eliminating trade barriers and tariffs.
Germany expects significant long-term opportunities for its automotive industry, mechanical engineering, and pharmaceutical sector.
According to the European Commission, the deal creates a market of approximately 720 million people and reduces tariffs by billions of euros.
The agreement is also seen as a challenge to the protectionist tariff policies of US President Donald Trump
However, it has raised fears that EU standards for consumer protection, the environment, and animal welfare could be weakened. European farmers are particularly concerned about increased competition and additional pressure on prices.
To address these concerns, additional economic safeguard clauses were added to the agreement at the last minute.
These provisions involve close monitoring and possible countermeasures for specific product groups, such as beef, poultry, citrus fruits, and sugar.
Despite this, in January, a slim majority of EU lawmakers requested a legal assessment of the agreement from the Court of Justice of the European Union, meaning the deal can only be applied provisionally until the European Parliament grants final approval.