CIUS sugar group and Abicab confectionery body back EU Mercosur trade deal
The European parliament. pic: Shutterstock
A combined total of 79 major industry organisations including CIUS, European sugar users association and Abicab Brazilian confectionery body have called on EU and South American nations to urgently finalise the Mercosur trade deal, reports Neill Barston.
The negotiations over the agreement have continued for over two decades, but have hit stumbling blocks in the wake of the pandemic, but as the collaborative group has noted, there is a huge amount at stake in terms of concluding the trade pact – which has encountered resistance from farming unions within Europe.
Despite this, a provisional agreement has finally been struck within the past few days, which must gain approval in the European Parliament to become formally ratified.
As the 79 organisations noted, there were over €159 billion in goods traded between the EU and Mercosur Latin American countries in 2022, attracting mutual investments worth €380 billion, and consequently they have asked for governments on both sides to expedite the proceedings of the Mercosur Free Trade agreement FTA) to deliver the deal, which has strong sector support, to free up market access and remove trade barriers and strengthen trade relations.
Together, these economic ties underpin millions of jobs on both continents. The associations highlight the importance of the EU-Mercosur agreement, emphasising that it can help mitigate the challenges posed by geopolitical instability and supply chain disruptions.
The joint statement notes that the agreement represents a rare opportunity to strengthen relations between the EU and Mercosur. Both sides would benefit from an agreement that supports economic recovery and lays the foundations for sustained growth. In particular:
However, the long-running negotiations, which impact on a broad sphere of industries including the food and drink markets (encompassing snacks, confectionery and bakery ranges), first began some 25 years ago, have not been universally popular.
There have been concerns from within some agricultural quarters as to whether the deal will in fact bring an equal measure of benefit between the two regions. Notably, environmental grounds, including the Climate Action Network, have criticised the negotiations as lacking in transparency.
Audrey Changoe, Trade and Investment Policy Coordinator for the group, commented on the state of the proceedings.
She said: “This shady deal is a full-frontal assault on democracy. It was negotiated behind the backs of citizens, despite widespread concerns from different sectors of society. More than 700 million people will be impacted by the deal. It’s truly scandalous that until the last minute, the Commission refused to disclose detailed information about the negotiations and negotiating documents.
“This goes against Trade Commissioner Sefcovic’s promises to improve transparency and dialogue with civil society and sets a dangerous precedent for the Commission’s new mandate.”
