The trade agreement with MERCOSUR will allow 60,000 European exporters – half of whom are small and medium-sized enterprises – to save approximately EUR 4 billion per year in export duties and benefit from simplified customs procedures.
Elchi.az reports that the head of the European Commission, Ursula von der Leyen, made this statement on Friday evening, after the Council of the European Union approved the signing of a free trade agreement with the South American bloc.
“What is particularly important is that this agreement will give our companies better access to important raw materials,” said von der Leyen, adding that she is looking forward to its imminent signing.
According to her, the agreement opens a “new era” in trade and cooperation with MERCOSUR partners and demonstrates the strength of relations with Latin America.
The agreement creates a market of 700 million consumers – the world’s largest free trade area. According to Fon der Leyen, this agreement is beneficial for all participants, creates more opportunities for business and stimulates European investments in strategic areas.
“It is expected that by 2040, EU exports to MERCOSUR will increase by almost EUR 50 billion, while the increase in the opposite direction will be approximately EUR 9 billion,” she said.
In addition, these agreements create a basis for political dialogue between Europe and the bloc countries, strengthen relations and allow for better coordination of activities.
The agreement is expected to be signed on January 12 in Paraguay, which currently chairs MERCOSUR. In addition to Paraguay, the bloc’s participants include Argentina, Brazil and Uruguay.