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Mercosur to announce FREE TRADE agreement with EU
Mercosur will officially announce a free trade agreement with the European Free Trade Association (EFTA), made up of Iceland, Liechtenstein, Norway, and Switzerland, during the summit that begins tomorrow in Buenos Aires. Negotiations between the two blocs have taken place since 2017, and after several years of dialogue and a preliminary announcement in 2019 that did not move forward due to environmental differences, a final consensus has now been reached.
Key aspects of the agreement:
The official announcement will be made at the 66th Mercosur summit, held July 2–3 at the Palacio San Martín in Buenos Aires.
The agreement will not enter into force immediately: it must first be ratified by the parliaments of the member countries of both blocs. However, unlike the Mercosur-EU agreement, the treaty with EFTA could be implemented bilaterally between countries that ratify it, without requiring simultaneous approval from all members.
The agreement aims to eliminate tariffs on most goods traded, facilitate access for Mercosur’s agricultural and industrial products to EFTA markets, and includes environmental commitments. In return, EFTA countries will gain access to Mercosur’s industrial and pharmaceutical sectors.
No significant resistance is expected in the parliaments of the EFTA countries, unlike the difficulties facing the agreement with the European Union.
Senior officials from the countries involved will be present at the summit, including Swiss Vice President Guy Parmelin and representatives from Norway, Iceland, and Liechtenstein, highlighting the importance of the agreement for both regions.
This development comes as Mercosur seeks to diversify its trade partnerships and strengthen its international presence, especially given the uncertainty and slow progress in ratifying the agreement with the European Union.
Mercosur will officially announce a free trade agreement with the European Free Trade Association (EFTA), made up of Iceland, Liechtenstein, Norway, and Switzerland, during the summit that begins tomorrow in Buenos Aires. Negotiations between the two blocs have taken place since 2017, and after several years of dialogue and a preliminary announcement in 2019 that did not move forward due to environmental differences, a final consensus has now been reached.
Key aspects of the agreement:
The official announcement will be made at the 66th Mercosur summit, held July 2–3 at the Palacio San Martín in Buenos Aires.
The agreement will not enter into force immediately: it must first be ratified by the parliaments of the member countries of both blocs. However, unlike the Mercosur-EU agreement, the treaty with EFTA could be implemented bilaterally between countries that ratify it, without requiring simultaneous approval from all members.
The agreement aims to eliminate tariffs on most goods traded, facilitate access for Mercosur’s agricultural and industrial products to EFTA markets, and includes environmental commitments. In return, EFTA countries will gain access to Mercosur’s industrial and pharmaceutical sectors.
No significant resistance is expected in the parliaments of the EFTA countries, unlike the difficulties facing the agreement with the European Union.
Senior officials from the countries involved will be present at the summit, including Swiss Vice President Guy Parmelin and representatives from Norway, Iceland, and Liechtenstein, highlighting the importance of the agreement for both regions.
This development comes as Mercosur seeks to diversify its trade partnerships and strengthen its international presence, especially given the uncertainty and slow progress in ratifying the agreement with the European Union.
