The EU, by closing a historic trade and investment agreement with the Mercosur countries, sends a signal to the whole world that cooperation can be achieved through the reduction of customs and trade barriers. This was stated by EU Commissioner for Trade and Economic Security, Maroš Šefčovič, in an interview with Slovak media representatives in Brussels.
Šefčovič helped to finalize the negotiation process between the EU and Argentina, Brazil, Paraguay, and Uruguay last week, negotiations that had lasted for over two decades. He emphasized that Slovaks, as well as all EU citizens, need to realize that the EU is about to almost completely eliminate tariffs on nearly 91 percent of the goods traded between these two largest trading blocs.
“For Slovakia, this means that when exporting cars to Mercosur – which currently amounts to about 200 million euros – tariffs will gradually decrease from 35 percent to zero. As for engineering products, optical devices, plastics, where tariffs are currently above 20 percent, they too will go down to zero,” he explained.
According to him, the total volume of Slovakia's trade with Mercosur countries is around 350 million euros, and with the elimination of tariffs, as is happening across the EU, this will result in significant annual savings.
“Overall, for the EU, this will save four billion euros annually just on customs duties. From this perspective, it is truly a historic agreement that not only has trade and economic significance but also represents a strong geopolitical signal,” the Slovak Commissioner pointed out.
He clarified that at a time when some large global economies are planning to increase customs or trade barriers, the EU and Mercosur countries are sending a strong message that “we are heading in the direction of reducing barriers, cooperation, increasing trade exchange, creating jobs, and new investment opportunities for entrepreneurs,” Šefčovič concluded.
Mercosur, comprising Argentina, Brazil, Paraguay, and Uruguay, is a prominent South American trade bloc that has been key in the EU’s strategy to expand its influence and increase trade with emerging markets.
Source: TASR
