Association agreement between the eu and the MERCOSUR, an analysis of the trade measures established in the agro-food sector

Abstract

On 28 June 2019, the EU and the MERCOSUR reached consensus for the signature of a Trade Agreement. In the agro-food sector, the agreement provides a series of instruments aimed at increasing the volumes of exchange between the two regional blocks. Among the tools negotiated to boost bilateral trade is a scheduled reduction of tariffs and the means for the transparent application of the sanitary and phytosanitary measures. Although the negotiations have taken an exceptionally long time, inter alia, for the discordant positions on the quotas of beef imported in the EU from the MERCOSUR and on the protection in the MERCOSUR of the Geographical Indications registered in the EU, the Trade Agreement is considered a major achievement for encompassing a market of almost 780 million of consumers. The long-term benefits of the agreement in the agro-food sector are still unknown, however, the trade association between the two partners should also be seen as a driver towards a greater economic integration and the diversification of the production processes in the MERCOSUR and as an opportunity for the EU to reform its agricultural policy.