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Economic analysis of the negotiated outcome of the EU-Mercosur partnership agreement (EMPA)
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Economic analysis of the negotiated outcome of the EU-Mercosur partnership agreement (EMPA)

An analysis prepared by the European Commission’s Directorate-General for TradeEconomic analysis of the negotiated outcome of the EU-Mercosur partnership agreement (EMPA) an analysis prepared by the European Commission’s Directorate-General for Trade

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The EU-Mercosur Partnership Agreement represents a landmark deal, concluded after more than two decades of negotiations. In today’s complex geopolitical landscape, it is essential for the EU’s competitiveness, economic security and resilience to secure new partnership agreements with reliable partners. Mercosur is the only major trading partner in Latin America with which the EU does not have a preferential trade agreement. Moreover, Mercosur has few free trade agreements (FTAs) with other partners and no FTAs with any other major industrialised economy, which means that this Agreement gives a first mover advantage to the EU. The latter is significant since Mercosur still has a high level of customs duties. The agreement will secure and diversify EU supply chains and create new opportunities for business by removing often prohibitive tariffs on EU exports to Mercosur. It eliminates duties on 91% of Mercosur imports from the EU. It opens previously protected service sectors and public procurement markets, protects EU Geographical Indications and upholds high standards for food safety, consumer protection, and regulatory practices. The agreement further includes commitments to sustainable development, labour rights, environmental protection, and the fight against climate change. This report aims to present the expected gains of the agreement based on a model simulation of its actual content. Such an endeavour is however bound to remain incomplete, as the available methodological framework and data allow to adequately quantify the impacts of costs reductions from tariff and to a certain extent also from non-tariff barriers but not the other expected effects of all areas covered by the agreement. Still, when taken in its quantitative and qualitative dimensions, the results presented here points to substantial benefits for the EU and Mercosur.
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ISBN 978-92-68-28053-9
DOI 10.2781/1755921
Katalognummer NG-01-25-012-EN-N
ISBN 978-92-68-28054-6
DOI 10.2781/1452842
Katalognummer NG-01-25-012-EN-C
PDF
ISSN ISBN 978-92-68-28053-9 DOI 10.2781/1755921 Katalognummer NG-01-25-012-EN-N
Papir
ISSN ISBN 978-92-68-28054-6 DOI 10.2781/1452842 Katalognummer NG-01-25-012-EN-C
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