The European Commission has approved two major trade agreements, with Mercosur countries and Mexico, giving the green light to start the ratification process. The agreements aim to create the world's largest free trade area, covering a market of more than 700 million consumers.
Trade Commissioner Maroš Šefčovič said these were "strategic advantages that will help shape the future", while Commission President Ursula von der Leyen stressed that European products and businesses would benefit from lower tariffs and costs.
The benefits of the EU-Mercosur agreement
The agreement with Mercosur (Argentina, Brazil, Paraguay, Uruguay) provides:
- EU exports increase by up to 39% (€49 billion per year).
- Protection of 344 EU geographical indications.
- Drastic reduction of tariffs (e.g. 35% on cars, 20% on machinery).
- Support the agricultural sector with a €6.3 billion safety net and strict quotas for meat and poultry.
According to the Commission, 30,000 European SMEs are already exporting to Mercosur, with the prospect of new investments of €380 billion.
The EU-Mexico agreement
The renewed trade agreement with Mexico provides:
- Elimination of tariffs of up to 100% on European products.
- Protection of 568 geographical indication products.
- Reduction of tariffs on agri-food products by over €100 million per year.
- Improved access to critical raw materials such as silver, bismuth, and antimony.
- Strengthening cooperation on sustainable development, migration, gender equality and the fight against international crime.
Next steps
To enter into force, the agreements need the approval of the European Council with a majority of 15 member states representing 65% of the EU's population and a simple majority of the European Parliament.
