Brazil, Argentina, Uruguay, Paraguay, and recently incorporated Bolivia announced in Asunción their “priority” to address pending issues with the European Union (EU) in order to achieve a commercial agreement between both blocs “as soon as possible.” The initial agreement reached in June 2019 remains unratified, with negotiations prolonged due to the addition of an annex addressing deforestation and other concerns.
Commercial ties between the two blocs are already significant, with EU investments in Mercosur countries increasing from 130 billion euros in 2000 to 330 billion in 2020. Negotiations aim to reduce trade barriers, integrate value chains, and foster investments, incorporating standards for sustainable development, environmental protection, and fair labor conditions. Mercosur, self-defined as The Southern Common Market, initially formed by Argentina, Brazil, Paraguay, and Uruguay, expanded with Venezuela and Bolivia, the latter still in the accession process.
Signing the agreement with the EU holds extraordinary benefits for Mercosur countries, especially in the current global landscape. The improved agreement reflects the changing dynamics and emphasizes the need for reliable global partnerships. Recognizing mutual interests, the pact enables the movement of productions to dependable and friendly nations, providing stability and opportunities for both regions. In a world undergoing reconfiguration, embracing this agreement becomes essential for fostering multiple, trustworthy dependencies.