The European Union sent a clear signal on Friday that it is serious about its priorities in terms of competitiveness and creating growth and opportunities for businesses and citizens. This was stated by the President of the European Commission (EC) Ursula von der Leyen after how the member states also confirmed through a written procedure that they support the signing of the free trade agreement with the Mercosur countries, reports TASR reporter.
Shortly before lunch, as part of the indicative vote of the ambassadors to the EU, it was clear that support for the trade agreement had been reached, which was confirmed by the written procedure. In a press release, Leyen recalled that three weeks ago, leaders at the EU summit assured their Mercosur partners that “together we will make history”.
“During this period, we worked hard with Member States and stakeholders to achieve the goals. Today, that hard work has paid off. I am very much looking forward to the signing of this landmark agreement during the Paraguayan presidency of Mercosur, which has just begun,” said the head of the EC.
According to her, after 25 years, the two sides have reached a mutually beneficial agreement that will increase prosperity and create “incredible opportunities”. He also sees the agreement as proof of the persistence and strength of the EU’s good relations with Latin America and proof that the two sides will become even closer.
“We are creating a market of 700 million people – the largest free trade zone in the world. Our message to the world is: Partnership creates prosperity and openness drives progress,” she described, adding that the signing of the agreement comes at a time when trade and addictions are being used as a weapon and is proof that the EU is a reliable partner.
“The deal is good for our citizens, our businesses and every member state. Today, 60,000 European companies export to Mercosur, half of which are small and medium-sized enterprises, which will benefit from lower tariffs, they will save approximately four billion euros annually in export duties and will benefit from simpler customs procedures. Our companies will gain better access to critical raw materials,” she stated.
Leyen emphasized that The EC listened to the concerns of European farmers and the agri-sector and acted on them, because the agreement contains strong guarantees to protect their livelihoods. The EU will also intensify steps in the area of controls on the import of goods from Mercosur countries. She recalled that the agreement offers EU farmers protection for 350 European geographical indications, more than in any other EU trade agreement.
“As one of Mercosur’s main trade and investment partners, this agreement will create more business opportunities in the EU and stimulate European investment in strategic sectors. EU exports to Mercosur are expected to increase by almost 50 billion euros by 2040, and Mercosur exports will subsequently increase by nine billion euros,” the head of the European Commission said. She confirmed that the signing of the free trade agreement should take place on Monday (January 12) in Paraguay.
