A historic agreement between Mercosur and the European Union with opportunities and challenges for Uruguay

Published 2024년 12월 11일

Tridge summary

A historic agreement between Mercosur and the European Union (EU) has been signed, aiming to significantly reduce tariffs on over 90% of goods traded, particularly benefiting the agro-industrial sector. The deal marks a milestone after two decades of negotiations and introduces free tariffs for most goods right away. Notably, agricultural products, especially beef and sheep meat from Uruguay, will receive special treatment with a new quota system and lower tariffs, providing Uruguay with a strategic advantage and the potential to enhance its beef exports to the EU. However, the agreement faces hurdles, including the need for approval from various EU entities and concerns about sustainability and fair competition, which could impact its implementation by 2026.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

On December 6, at the Mercosur headquarters in Montevideo, a historic milestone was reached: after more than 20 years of negotiations, the Mercosur countries and the European Union (EU) signed a strategic partnership agreement. The meeting was attended by the President of the European Commission, Ursula von der Leyen, along with the leaders of Mercosur: Luis Lacalle Pou (Uruguay), Javier Milei (Argentina), Luiz Inácio Lula da Silva (Brazil) and Santiago Peña (Paraguay). This treaty promises to become a pillar of trade between both regions, especially in the agro-industrial sector, although it also imposes demanding technical and political challenges for its implementation. The treaty provides that more than 90% of the goods traded between both blocks will be free of tariffs immediately after its signing. However, as Álvaro Pereira, head of market access and intelligence at the National Meat Institute (INAC), explained, agricultural products will receive “hyper-particular ...

Source: Agromeat