Detail

European Union

Oilseeds, oils and meals

All crops, livestock products

01/06/2019

Trade

Comprehensive trade agreements

The EU and the MERCOSUR bloc reached agreement in principle on a comprehensive free-trade treaty. The agreement would progressively enhance market access for goods and services, while promoting cooperation in customs issues, food safety and sustainable trade. Next steps include the treaty’s legal revision and parliamentary ratification in all participating countries.

Ending two decades of negotiations, on 28 June, the European Union and the Mercosur bloc (comprising Argentina, Brazil, Paraguay and Uruguay) reached agreement in principle on a comprehensive free-trade treaty. The agreement will progressively enhance market access for goods and services while promoting cooperation in customs issues, food safety, and sustainable trade. Next steps include the agreed text’s legal revision, followed by parliamentary ratification in all participating countries. Regarding the EU’s agricultural trade with Mercosur, the EU agreed to eliminate tariffs on 82 percent of its agri-food imports; for the remaining 18 percent, it will offer import quotas or preferential tariffs, while around 100 farm products will remain excluded from the deal. The treaty’s detailed provisions still have to be analyzed by market participants.