EU–Mercosur Trade Agreement: An Opportunity We Cannot Miss
On 3 September, the European Commission transmitted the EU–Mercosur trade agreement to the Council and the European Parliament – an important step towards the ratification of this strategic document. BusinessEurope, the European business organisation of which the Lithuanian Confederation of Industrialists (LPK) is a member, emphasises that the agreement would significantly strengthen Europe’s economic resilience, competitiveness, and global standing.
The trade agreement provides for:
-
cutting tariffs on more than 91% of EU goods exported to Mercosur countries;
-
opening new opportunities in a market of over 750 million consumers;
-
improved access to critical raw materials such as soybeans and other agricultural products;
-
clearer rules for small and medium-sized enterprises.
“On the one hand, Lithuanian companies will greatly benefit from the opportunity to secure imports of raw materials from Latin American countries – soybeans and other products. This agreement could therefore provide an important boost for our industry. On the other hand, we also recognise the sensitivity of certain agricultural sectors – particularly poultry and beef producers. The European Commission has foreseen a €1 billion compensation mechanism to mitigate potential negative effects, as well as quotas that are essential, at least in the initial phase,” said LPK Vice President Andrius Pranckevičius.
Today, in the face of geopolitical tensions and trade wars, it is especially important for Lithuania to diversify supply chains and secure access to new markets. The EU–Mercosur agreement can contribute to strengthening our economic security and reducing dependence on a limited number of suppliers.
LPK supports an active role for EU trade policy, which not only creates opportunities for growth but also ensures fair and rules-based global trade.
More information: BusinessEurope publication on the EU–Mercosur agreement
