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HomeSustainability impact assessment in support of the association agreement negotiations between the European Union and Mercosur
Final report
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The trade relations between the EU and Mercosur are essential for both blocs, given that the EU is the second trading partner for Mercosur and Mercosur the eleventh trading partner for the EU. An inter-regional Framework Cooperation Agreement from 1999 currently forms the basis for EU-Mercosur trade relations. Following negotiations since 2000, in June 2019 the EU and Mercosur reached a political agreement for an Association Agreement including a trade component. This Sustainability Impact Assessment (SIA) provides an examination of the potential economic, social, human rights and environmental impact of the trade component of an Association Agreement between the EU and Mercosur, specifically Argentina, Brazil, Paraguay and Uruguay. This analysis lays the basis for designing flanking and mitigating measures, a number of which are proposed throughout the study. The report employs the dynamic version of the GTAP Model known as GDyn to study the impacts of two scenarios, one conservative and one more ambitious, with respect to the outcome of the negotiations in terms of tariff and non-tariff measures reductions by both parties. For Mercosur, the conservative scenario assumes the elimination of tariffs in 90% of the industrial products and 80% in agricultural products. In the ambitious scenario, Mercosur eliminates tariffs in 100% of products. The EU eliminates tariffs in all industrial products in both scenarios, applies partial tariff cuts of 15% in the conservative scenario and 30% in the ambitious scenario in rice, sugar, ruminant meat and other meat sectors. For the cereals and the dairy sector, cuts of 15% are applied in the conservative scenario and cuts of 100% in the ambitious scenario.
- Published:
- Corporate author(s): Directorate-General for Trade and Economic Security (European Commission) , LSE
- Themes: Central and south America , Trade — Competition
- Subject: association agreement , customs tariff , European Union , free-trade agreement , impact study , Mercosur , tariff agreement , trade agreement , trade cooperation , trade relations
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| ISSN | ISBN 978-92-76-26958-8 | DOI 10.2781/54752 | Catalogue number NG-03-20-817-EN-N |
- Released on EU publications website:
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