The European Union and South American trade block Mercosur announced a historic free trade agreement on Friday, 28 June, that will slash trade barriers between their member states.
Several key fisheries, such as Argentine red shrimp, could benefit from the terms of the deal.
The agreement is the first of its kind to be reached with Mercosur, a trade block which includes Argentina, Paraguay, Uruguay, and Brazil. The combined populations of Mercosur and the E.U. number more than 780 million people. An E.U. statement said that the agreement “will consolidate a strategic political and economic partnership and create significant opportunities for sustainable growth on both sides.”
Negotiations have been underway on the deal for several decades. The agreement, signed by the associations, will now be reviewed by member nations and each country must ratify it in their congress.
As part of the agreement, suppliers from both sides will adhere to E.U. standards for food safety and environmental concerns; the deal also recognizes multiple geographical Determination of Origin classifications. Member nations have agreed to uphold measures of the Paris climate agreement as well.
As a result, both industrial and agri-food products will see a phase-out of sometimes-prohibitive tariffs on both sides.
For the E.U., this means many processed foods and finished products, such as chocolates and confectionery (20 percent tariffs), wines (27 percent), and spirits (20 to 35 percent), among others, will see their Mercosur tariffs slashed.
One of the beneficiaries will be Argentina’s seafood industry – especially its coveted red shrimp fishery. Both Argentina’s shrimp and frozen fish products will see the tariffs they face for export into the E.U. decreased over the next four to 10 years. Other products, such as the Southern hake, could see tariffs reduced to zero as soon as the agreement takes effect.
