Any of these situations would be a disaster for the Argentine economy. One of the cornerstones of still inefficient industrial production is the possibility of selling to Brazil at zero tariffs, while competitors have to pay the CET. If Brazil signs many trade agreements, Argentine companies will face fierce global competition in the Brazilian market without having the advantage of accessing new markets opened by the trade agreements for Brazilian companies. Today, exports to Brazil account for more than 850,000 jobs in the EU alone. Companies in Mercosur countries employ more than 30,000 people in the EU. More than 60,000 EU companies export to Mercosur. If we facilitate trade and investment with Mercosur, these numbers could be higher. The agreement will reduce and eliminate discrimination and expand opportunities for service providers and investors in the EU and Mercosur. Trade barriers disproportionately affect small businesses more than large businesses, as small businesses may not have the time and resources to overcome them. This is why the EU has called for the formation of a separate chapter for small and medium-sized enterprises (SMEs) in trade agreements to address the specific challenges faced by SMEs in their international trade and investment activities. Like all EU trade agreements, the EU-Mercosur agreement leaves the governments of both sides completely free to manage the distribution of water or other essential services at their discretion. They continue to decide whether these services are part of the public or private sector.
The agreement between the EU and Mercosur is no different. Cooperation only applies to EU trade or investment legislation. It will not contain the legislation of the EU Member States. Mercosur is a major market for EU exports and has so far been the only major trading partner in Latin America with which the EU does not have a preferential trade agreement. EU companies export to the four founding countries of Mercosur*: both the EU and Mercosur have strict laws to protect workers` rights. They agreed that the trade agreement between them should support existing tariffs, not reduce or dilute them. This would make it illegal to sell imitations. This means that the use of a GI term for non-genuine GI products is prohibited and expressions such as “type”, “type”, “style”, “imitation” or similar are not allowed. In addition, the agreement provides protection against the misleading use of symbols, flags or images that indicate a “false” geographical origin. For example, no one is allowed to call Roquefort cheese unless it is the real cheese produced in Roquefort, France, under certain production conditions.
In June 2019, the European Union (EU) and Mercosur (Brazil, Paraguay, Argentina and Uruguay) announced that they had reached an “agreement in principle” on the content of a bilateral trade agreement that they have been negotiating repeatedly for more than 20 years. Most of the text of the trade agreement is now public in draft form, although some important annexes and the framework preamble are not available. This may be due to the fact that they are still being set up behind closed doors. The agreement will remove these high tariffs and other barriers to trade such as unclear rules and regulations or elaborate procedures, making it easier for European producers to export to Mercosur. .