The European Commission has proposed the adoption of trade agreements with Mercosur countries and Mexico

The Brussels-based body said the two major agreements play a key role in diversifying the EU’s trade relations and strengthening economic and political ties with partners who share similar values.

The EU estimates that the Mercosur agreement (EMPA) could increase EU exports to the region by up to 39%, or €49 billion, per year, and support more than 440,000 jobs in Europe. The agreement will give EU companies access to a market of 700 million at significantly lower tariffs, particularly for industrial and agri-food products.

The European Commission stressed that the agreement protects the interests of EU farmers, as preferential imports only affect sensitive products to a limited extent – for example, 1.5 percent and 1.3 percent of EU production in the case of beef and poultry, respectively. In addition, legal means would be used to ensure that the European agricultural sector is not disadvantaged.

According to the Brussels body, the agreement with Mexico (MGA) will completely eliminate the remaining high tariffs on EU agri-food exports, so that cheese, pork, chocolate and wine, for example, can become more competitive on the Mexican market. The agreement will also protect hundreds of products with European designations of origin.

Ursula von der Leyen, the president of the board, stressed in connection with the announcement: “The agreements with Mercosur and Mexico are milestones for the EU’s economic future. They open up new business opportunities, reduce tariffs, strengthen supply chains and create jobs.”

According to the commission, the agreements will not only bring economic benefits, but also promote the protection of human rights, sustainable development and enhance cooperation in areas such as the fight against organised crime, migration and climate change.