The EU-Mercosur Agreement Ratification: What You Need to Know
The Europe Union and Mercosur, a trading bloc made up of Argentina, Brazil, Paraguay, and Uruguay, signed a historic trade agreement on June 28, 2019. The agreement is set to reduce tariffs and increase trade between the two blocs, which together represent a market of 780 million consumers. However, the ratification process has been delayed due to concerns over environmental and social issues.
What is in the agreement?
The agreement includes provisions for reducing tariffs on goods and services traded between the EU and Mercosur countries, including agricultural products, cars, and chemicals. It also includes provisions for protecting intellectual property and opening up public procurement markets.
What are the concerns?
Environmental and social concerns have delayed the ratification process. Critics argue that the agreement could lead to deforestation and environmental damage in South America, particularly in the Amazon rainforest. There are also concerns over the impact on indigenous people and human rights violations in the region.
In response to these concerns, the European Parliament passed a resolution in February 2020 calling on the European Commission to ensure that the agreement includes strong environmental and social standards and that Mercosur countries are held accountable for meeting those standards.
What happens next?
The ratification process has been delayed due to these concerns. Some member states, including France and Ireland, have threatened to veto the agreement unless these issues are addressed. The European Parliament must also approve the agreement before it can be implemented.
The COVID-19 pandemic has also disrupted the ratification process, as economic priorities have shifted and the focus has shifted to combating the pandemic.
Conclusion
The EU-Mercosur agreement has the potential to benefit both the EU and Mercosur countries, but concerns over environmental and social issues have delayed the ratification process. It remains to be seen if these concerns will be addressed and if the agreement will be ratified. As the world continues to grapple with the COVID-19 pandemic, the focus may shift away from trade agreements and towards addressing immediate economic needs.