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Analysis of the agreement between the European Union and the Mercosur

Greens/EFA Study

On 28 June 2019 the European Union and the Mercosur member countries (Argentina, Brazil, Paraguay and Uruguay) concluded talks on a free trade agreement between the two blocs, after 20 years of negotiations. Despite the fact that trade agreements being negotiated today are establishing the framework for inter- national economic exchange for decades to come, the EU-Mercosur agreement barely acknowledges the importance of tackling the climate crisis. The Paris Agreement is mentioned in its non-enforceable Trade and Sustainable Development chapter, but the content and effect of the trade disciplines comprehensively covered in the rest of the text run absolutely contrary to climate objectives. If implemented, they would lock- in and deepen an unsustainable and imbalanced relationship between the two economic blocs.

The study offers a comprehensive review of the disciplines and mechanisms covered in the hundreds of pages of text which make up the agreement, and of their potential effects. It covers all chapters published so far, addressing changes to trade flows in goods and services, rules, standard-making and non-tariff barriers to trade. The study is based on a textual analysis of the agreement itself, while also integrating secondary literature, impact assessments, and the perspectives and analyses of stakeholders on the agreement.

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