The trade agreement between European Union and Mercosur it will be applied provisionally from May 1st, according to a statement released this Monday (23) by European CommissionAccording to the entity, the European Union formally notified the Mercosur countries about the provisional application of Interim Trade Agreement (iTA), concluding the necessary procedural step following the European Council's decision in January. The provisional implementation will apply to countries that have already completed their internal ratification processes and notified the European bloc by the end of March. To date, Argentina, Brazil Uruguay and Paraguay have already completed this step. Paraguay has also ratified the agreement and should formalize the notification soon.
Reduced rates and predictability
The provisional application will allow the elimination of tariffs on certain products from the start of its validity, in addition to establishing more predictable rules for trade and investment between the blocs. The agreement creates one of the largest global free trade areas, bringing together approximately… 718 million people and a combined Gross Domestic Product greater than US$ 22 trillionThis measure is considered strategic for expanding trade flows and strengthening economic integration between South America and Europe.
This text was translated by machine from Brazilian Portuguese.