The Mercosur EFTA trade agreement is a significant step towards enhancing trade relations between South America and Europe. The agreement is aimed at providing market access to both regions and eliminating trade barriers. It is a comprehensive deal that addresses all aspects of trade and investment, including goods, services, and intellectual property rights.
The agreement was signed on June 23, 2019, between the Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay) and the EFTA countries (Iceland, Liechtenstein, Norway, and Switzerland). The deal is expected to boost trade between the two regions by reducing tariffs, promoting investment, and facilitating the movement of goods and services.
Under the agreement, the EFTA countries will benefit from greater market access to the Mercosur countries. EFTA exports to Mercosur countries amounted to approximately $2.7 billion in 2018, with the main products being machinery, pharmaceuticals, and chemical products. The elimination of tariffs will lead to increased trade and investment, benefiting both regions.
The Mercosur countries, on the other hand, will benefit from increased access to the EFTA market. The EFTA countries are known for their high standards of living and purchasing power, making them an attractive market for the Mercosur countries. The deal will provide new opportunities for Mercosur exports such as beef, poultry, and fruits.
The agreement also includes provisions for the protection of intellectual property rights, which is an important aspect for businesses operating in both regions. The deal will ensure that companies are protected from intellectual property violations and that their innovations are safeguarded.
Overall, the Mercosur EFTA trade agreement is a significant milestone in enhancing trade relations between South America and Europe. The deal is expected to lead to increased trade and investment, benefiting both regions. The agreement demonstrates the importance of cooperation and collaboration in the global economy and highlights the need for countries to work together to create a more prosperous future.