The Mercosur-EU will be meeting this month in hopes of finalizing the long-standing deal before both continents entre in to national elections, which could thwart any arrangement not fully agreed upon yet, as per ft.com. Trade talks over years have been paused numerous times and this is the last chance before talks are shelved for a further expended period.
South American economic community, Mercosur consisting of full members Argentina, Brazil, Paraguay and Uruguay was formed to allow the free movement of goods, people, currency and trade through each member’s borders.
The Mercosur Bloc for 20 years has been working on a bi-regional association agreement with the European Union for ease of trade and access to both markets. The current trade agreements between the blocs date back to 1999 and most of the current agreements between the Mercosur community and the EU are on individual country to economic bloc basis.
The main negotiations points of the deal include tariffs, barriers to trade, intellectual property, sustainable development and small-medium-sized enterprises. Import and Export trade between the two continental blocs in 2017 reached almost €100 Billion, the conclusion of the deal is widely expect to increase that number even further.
By Mokgethi Mtezuka