Free Trade with MERCOSUR: An attractive opportunity for the UK?
After a negotiation process characterised by long periods of stagnations and disagreements[1], on the 17th of January, a Partnership Agreement was signed between the European Union and the four founding members of the Southern Common Market (MERCOSUR, as known in Spanish): Argentina, Brazil, Paraguay and Uruguay[2]. This free trade agreement is meant to eliminate tariffs on 91% of EU exports to the South American bloc. This will be done over a 15-year phase-in period, paired with the removal of duties on 92% of MERCOSUR goods sold to the EU, within a 10-year timeframe. There is uncertainty regarding the ratification and implementation of this deal, due to a recent decision by the European Parliament to refer the agreement to the EU Court of Justice. Nevertheless, the economic size of the parties involved (estimated at 18% of the world’s GDP), along with the current context in which traditional large trading partners are becoming less reliable, has generated global interest. Such deal could constitute an example for other economies seeking to secure free trade with like-minded partners. It would allow them to diversify their trade portfolio and diminish their dependence on potentially problematic counterparts. If the deal goes ahead, EU exporters will secure [...]
