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| Mercosur countries hope to export up to 99,000 tonnes of beef to Europe a year before they have to pay tariffs (AFP Photo/DANIEL GARCIA) |
Brussels (AFP) - The European Union and South American trade bloc Mercosur sealed a blockbuster trade deal Friday, ending 20 years of talks over one of the world's largest regional commercial accords, negotiators said.
The
agreement came after two decades of often tough negotiations between the EU and
the countries of Mercosur -- Argentina, Brazil, Paraguay and Uruguay -- which
had repeatedly stalled because of European farmer sensitivities over the beef
market.
The deal
was announced as the US administration of President Donald Trump faced several
bilateral disputes, including trade tensions with China and disagreements with
EU countries.
"I
measure my words carefully when I say that this is a historical moment,"
European Commission President Jean-Claude Juncker told reporters on the
sidelines of the G20 in Osaka.
"In
the midst of international trade tensions, we are sending today a strong signal
with our Mercosur partners that we stand for rules-based trade."
In a strong
show of unity, all the European and Mercosur leaders also members of the G20
gathered for a joint photo, with Argentine President Mauricio Macri also
hailing a "historic day."
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| Europe wants Mercosur countries to open their markets to EU automakers (AFP Photo/Paul ELLIS) |
European
farmers concerned
The trade
pact is the largest ever concluded by the EU, Juncker said in a statement
released in Brussels, and would save European companies more than four billion
euros ($4.5 billion) worth of trade duties every year.
It covers
markets that total approximately 780 million consumers, an EU statement said.
Brazil
welcomed a "historic" agreement with the EU, while Argentina called
the deal "unprecedented".
The
announcement of the deal, details of which were not revealed and which must be
approved by the 28 EU member states, comes as leaders of the world's most
powerful economies gather in Osaka, Japan, for a G20 summit.
Once
implemented, it is tipped to eliminate 99 percent of agricultural and
industrial tariffs on both sides and facilitate exchanges in services and
government procurement, reduce technical barriers, and effect sanitary and
phytosanitary measures and intellectual property.
The
agreement has nonetheless raised concerns of European farmers who fear unfair
competition, as well as NGOs concerned about consequences for the climate.
Challenges to EU farmers
"Today’s
agreement also presents some challenges to European farmers and the European
Commission will be available to help farmers meet these challenges," the
EU's agriculture commissioner Phil Hogan said in a statement.
"For
this agreement to be a win-win... carefully managed quotas will ensure that
there is no risk that any product will flood the EU market and thereby threaten
the livelihood of EU farmers."
The
28-member EU currently accounts for about one-quarter of global gross domestic
product (GDP) at 18 trillion euros ($20 trillion).
Finalisation
of the talks had been complicated by French President Emmanuel Macron, who
threatened to scrub the deal if Brazil withdrew from the Paris climate accord
that commits signatories to reducing greenhouse gas emissions and which
Brazil's President Jair Bolsonaro has threatened to leave.
"If
Brazil leaves the Paris accord, we could not sign trade deals with them,"
Macron said Thursday night in Japan en route to Osaka for the G20 summit.
"The
reason is simple, we are requiring our farmers to stop using pesticides... our
businesses to reduce emissions. That has a competitive cost," Macron
added.
Cognac and Manchego cheese
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Activists
had urged the EU to halt the trade talks over Brazil's alleged harm to
its
rainforests and indigenous peoples (AFP Photo/Mauro Pimentel)
|
Cognac and Manchego cheese
Activists
had urged the EU to halt the Mercosur trade talks over Brazil's alleged harm to
its rainforests and indigenous peoples in order to benefit influential
agribusinesses.
For Europe,
the deal would mean greater access to large South American automobile markets
and respect for so-called protected geographical indications such as Cognac or
Manchego cheese.
The EU is
also counting on the agreement to improve access to the South American market
for telecommunications, transport or financial services.
Mercosur
countries in return hope to export up to 99,000 tonnes of beef to Europe a year
before they have to pay tariffs, alongside stronger exports of ethanol, sugar
and poultry.
The EU and
Mercosur exchange 88 billion euros in goods annually, with a balance very
slightly in favour of the Europeans (+2.5 billion euros).









