What Is The Mercosur Trade Agreement

by lobo April 15, 2021  

In January 2004, MERCOSUR received a proposal from Egypt to negotiate a free trade agreement based on discussions at the G20 meeting in November 2003. At the regular meeting of the “MerCOSUR” Council within the framework of the MERCOSUR common market, a framework agreement was signed between MERCOSUR (composed of Argentina, Brazil, Paraguay and Uruguay) and the Arab Republic of Egypt. This decision was adopted by MERCOSUR as a 16/04 decision of the Common Market Council. This agreement provides for the negotiation of a free trade agreement with a first phase, created by the negotiation of a fixed preferential agreement. However, European trade policy is now in danger of being in a kind of deadlock. Member States may have free trade zones, industrial free trade zones, export processing zones and specific customs territories that aim to supply goods marketed or produced in these territories with different treatment than their respective customs territories. [Citation required] Danilo Astori, Vice-President of Uruguay, said that the issue of a free trade agreement with the United States needed to be addressed and that “opportunities must be created.” He also said that “every Mercosur country should have a large number of accessions. Mercosur must have a common international policy, a moderate protection agreement against third parties and, above all, agreements with other trading blocs. [47] It is therefore perhaps in the form of a new phase of dialogue, leading to specific commitments and measures, that the discussion, if it takes place, could continue, with the aim of not rewriting the agreement, but of adding another agreement, possibly another mechanism of engagement, or even an “investment agreement”, as proposed in the study published by IDDRI. This is for change, using the many creative resources of civil society, businesses and parliamentarians, as well as the recommendations contained in the reports of the various committees and experts who have studied the subject.

This would be an exemplary development of European trade policy, which would not disown the architects of this historic agreement, but would add a kind of second floor, more democratic and sustainable, I hope. The trade agreement between the EU and the Mercosur countries (Argentina, Brazil, Paraguay and Uruguay), negotiated for 20 years and often referred to as the “car for beef”, has been the subject of much criticism, including from governments of Member States such as France and Ireland.


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