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Brazil supports trade agreement between Mercosur and EU

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European bloc showed less flexibility under the agreement

The Brazilian industry has been very engaged and flexible in the negotiations on an understanding between Mercosur and the European Union and considers that the conclusion of a free trade agreement between the two blocs is fundamental to ensure greater integration in international trade and to industrial competitiveness.

The National Confederation of Industry (CNI) understands that the two blocs missed an important opportunity not to enter into a political agreement at the meeting between ministers which ended on Thursday (19) in Brussels, mainly because of the European Union’s lack of flexibility.

“The European Union has not shown the necessary flexibility and has only put forward old proposals and demands. In the industry view, Europeans are missing out on a strategic opportunity at a time when populism and protectionism are growing in the world, “said CNI Industrial Development Director Carlos Abijaodi.

The CNI advocates that the ministers of both blocs establish clear guidelines and set a timetable for the conclusion of a political agreement in 2018. The political agreement is a definite step toward closing the final free trade agreement, which would depend on adjustments.

In addition to allowing the opening of the Brazilian market, an agreement between Mercosur and the European Union will stimulate European investments in Brazil and contribute to the reduction of costs within the country. The free trade agreement between the two blocs will allow, for example, the gradual elimination of import tariffs currently applied by the European Union to Brazilian products.

The Brazilian industry remains committed to economic openness through trade agreements and will follow the agenda of negotiations with markets such as Canada, EFTA, Japan and Mexico. In addition, it will work to deepen the agreements with South American countries.