CAOBISCO and 22 other associations representing a wide array of European industries, including food-related sectors, sent a joint letter to the three EU Presidents to call on the EU and Mercosur leaders to urgently finalize the trade negotiations on the remaining open points.

“In short, there is no time to lose,” the message urges. “Given that the EU lacks substantial reserves of key raw materials necessary for the green and digital transition and the fact that a substantial proportion of global growth is expected to come from outside of the EU in the next decade, our industries need open export markets to sell European goods and services and procure raw materials at a competitive price. The agreement is therefore an economic, social, and geopolitical imperative,” the letter stresses.

“Having the EU-Mercosur agreement in place will boost the integration of our economies and help to diversify our value chains both for imports and exports. This is key for the competitiveness of our export-oriented sectors that create tens of millions of jobs in Europe and provide an essential contribution to the prosperity and standards of living of European citizens. It also helps to promote the EU’s open strategic autonomy in times of rising economic security concerns by partnering with like-minded countries.”

The agreement offers Europe an opportunity to partner with the South American trade block. A deal helps to significantly reduce both high tariff and non-tariff barriers that negatively affect European companies’ chances to compete on Mercosur’s relatively closed market with over 270 million consumers.

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