Trade Deal With Mercosur Is Top Priority for EU Trade Chief
Euronews reports on the trade deal that the EU is negotiating with Mercosur. Mercosur is a South American trade bloc with countries like Argentina, Brazil, Paraguay and Uruguay. Venezuela is also a full member of Mercosur but is currently suspended. Associated countries are Bolivia, Chile, Colombia, Ecuador, Guyana, Peru and Surinam. According to Wikipedia:
Mercosur’s purpose is to promote free trade and the fluid movement of goods, people, and currency. It currently confines itself to a customs union, in which there is free intra-zone trade and a common trade policy between member countries
According to Euronews:
EU negotiations with the Mercosur group of Argentina, Brazil, Paraguay and Uruguay, the world’s fourth-largest trade bloc, have intensified since Europe’s trade talks with the United States were frozen after Donald Trump’s 2016 presidential election victory.
In terms of tariff reduction, it could be the EU’s most lucrative trade deal to date, with the savings potentially four times greater than for deals with Canada and Japan combined.
“It would be an extremely powerful signal … For economic reasons, strategic reasons, and political reasons everything speaks in favour of this,” Malmstrom said.
Brazilian President Jair Bolsonaro said a week ago that Mercosur would soon sign a trade deal with the EU.
Read the full story here.