EU-Mercosur Agreement Critical for Global Economic Recovery

A statement from leading European and Latin American business associations emphasizes the importance of ratifying the EU-Mercosur agreement, citing its potential to strengthen economic ties between the European Union and Mercosur. The accord generated €159 billion in trade between the two regions in 2022, with mutual investments approaching €380 billion.

As the situation becomes increasingly unstable due to global events such as supply chain disruptions, these business associations are stressing that the EU-Mercosur agreement is a rare opportunity to support sustainable growth and recovery in both continents. The statement outlines several key benefits of the agreement:

Market Expansion: Removing trade barriers would provide increased market access for goods and services, leading to improved economic momentum.

Supply Chain Security: Enhanced trade relations would mitigate supply chain disruptions, ensuring reliable access to critical resources.

Sustainable Development: Improved cooperation between EU and Mercosur businesses could bolster sustainable development, protect workers' rights, and safeguard environmentally sound practices across both regions.

Commenting on the current situation, key business associations expressed their urgency for policymakers to take swift action towards ratification of the agreement. They argued that this would allow the EU and Mercosur to remain competitive in an increasingly volatile global landscape.