How the EU-Mercosur trade agreement will spur growth
News
8 Dec 2024
Trade
How the EU-Mercosur trade agreement will spur growth

AmCham EU congratulates the EU and Mercosur on finalising negotiations for the landmark partnership agreement between the two regions, 25 years since the negotiations started. This deal is the largest ever concluded by the EU, as well as the first trade agreement signed between Mercosur and a major trading partner. This deal will deepen economic ties, unlocking a consumer market of 284 million people for companies in Europe. The agreement will also further facilitate trade in goods and services that is already worth over €159 billion annually. Through swift ratification, both parties can deliver the economic recovery and development that is much needed on both sides of the Atlantic. 

Free trade agreements like the EU-Mercosur agreement still play a key role in connecting businesses in the EU to important sources of growth and new market opportunities. These comprehensive agreements balance competition and ensure a level playing field, reinforce the resilience of supply chains, limit risk by diversifying imports and exports and increase social and sustainability standards globally. 

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Reacting to the vote, Malte Lohan, CEO, AmCham EU, welcomed the Parliament’s decision as a necessary step towards a more predictable transatlantic marketplace: ‘The Parliament today has taken a decision that helps put the EU-US trade and investment relationship back on track. It is the right signal for businesses that have been stuck in limbo over the past year.’

‘AmCham EU opposes broad-based tariffs. However, given political priorities on both sides of the Atlantic, we still see the Framework Agreement as the most realistic route to securing a more constructive EU-US trade and investment climate’, Mr Lohan added. ‘We call on the Parliament and Member States to conclude trilogues swiftly. Once the tariff reductions are approved, the EU and the US can get back to advancing the cooperation the Framework Agreement envisages on a range of areas that benefit European and American businesses alike. We look to both sides to continue honouring their commitments throughout this process.’ 

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