EURATEX & 25 other groups call for quick EU-Mercosur FTA approval

We, 26 European business associations, representing a wide array of industries and businesses, express our full support for the swift ratification of the EU-Mercosur Partnership Agreement.

Together, our members cover a significant portion of the total trade in goods and services of over 153 billion euros in 2024 between the EU and the Mercosur region, as well as the approximately 380 billion euros of mutual investment in our two regions in 2023. In this unprecedented time when the rules-based global order is being critically undermined, this free trade agreement represents a beacon in the EU’s diversification strategy. It is therefore a critical element in ensuring the EU’s long-term competitiveness.

Twenty-six European business associations, including EURATEX, have urged the swift ratification of the EU-Mercosur Partnership Agreement, calling it vital for Europe’s long-term competitiveness and global diversification.
The deal covers €153 billion in annual trade and €380 billion in mutual investment, with projected GDP gains of €77.6 billion for the EU and €9.4 billion for Mercosur by 2040.

By 2040, according to DG Trade’s calculations, the agreement is expected to add 77.6 billion euros to the EU GDP and 9.4 billion euros to the Mercosur GDP. At the same time, the agreement will result in a 39% increase in EU exports to Mercosur and a 17% increase in Mercosur exports to the EU.

The EU-Mercosur is a modern agreement, driven by modern principles. It will deliver increased market access and improved access to resources, while preserving key sectors in European domestic markets, diversifying secure supply chains, and fostering investments for both sides. It will also help us deepen our cooperation on sustainable development, in areas such as fighting climate change, preserving biodiversity, and advancing labour and social rights.

European businesses wholeheartedly support the EU-Mercosur Agreement and call on the Council and European Parliament to swiftly ratify the EU-Mercosur interim Trade Agreement (iTA) and the EU-Mercosur Partnership Agreement (EMPA). To this end, it is key to streamline the ratification process and to ensure timely completion and avoid procedural delays. This is a crucial opportunity for Europe which will support growth and prosperity for one-fifth of the global economy – benefiting about 750 million people.

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Fibre2Fashion News Desk (KD)