EU-Mercosur postponement is bad news for business

The decision to postpone the signature of the landmark agreement is bad news for business. BusinessEurope believes that the benefits offered by the agreement are unequivocal. The agreement is a central piece in the EU's diversification agenda, which is critical to supporting a more competitive and resilient economy.

BusinessEurope Director General Markus J. Beyrer said: "BusinessEurope regrets the decision to postpone the signature of the EU-Mercosur agreement. Once again, the EU is delaying an agreement that is vital for its economic and geopolitical interests. The EU-Mercosur agreement is crucial for strengthening the European Union's competitiveness and strategic autonomy. In a geoeconomic environment increasingly marked by uncertainty, diversifying trade relations and providing European companies, particularly SMEs, with new opportunities is essential.

"This is precisely what the EU-Mercosur agreement delivers: a rules-based partnership with like-minded partners who share our values and commitments, offering privileged access to a market of 270 million consumers. This is an opportunity the European Union cannot afford to miss.

"The agreement also strengthens Europe's strategic autonomy by diversifying supply chains, reducing dependencies on critical raw materials, and preventing the erosion of Europe's established position in the region, especially given China's growing role as Mercosur's largest trading partner since 2017.

"We urge all parties to rapidly agree on a date for signature that can finally move the ratification process forward. The European Union's credibility as a reliable trading partner is at stake. After more than 26 years of negotiations, finalising the EU-Mercosur agreement is essential to reinforce Europe's competitiveness, strategic autonomy, and capacity to shape global rules in line with its values. Now is the time.''

Explore here the benefits the EU-Mercosur agreement will provide to a wide array of business sectors.