Trade negotiations Between the European Union and Mercosur

In both countries, the Commissioner will address the negotiation process currently underway between the EU and Mercosur, as well as the most important bilateral trade issues. The Commissioner will also meet with business leaders and representatives of European industry.

The European Union began negotiations on a free trade agreement with Mercosur (Argentina, Brazil, Paraguay and Uruguay) in 1995. These negotiations were suspended in 2004 without reaching an agreement. The European Commission decided to reopen negotiations with Mercosur in May 2010. This decision was approved by the EU-Mercosur summit in May. Since then, a round of negotiations has been held in Buenos Aires in June 2010. The next round will be held in October 2010 in Brussels.

Mercosur is a large market with high growth potential. The region's total GDP amounts to €1.3 billion, higher than that of countries such as South Korea, India or Russia. In recent years the average growth rate has been 4-6% in Brazil and 6-9% in Argentina.

The trade part of the Association Agreement between the EU and Mercosur aims to:

- be comprehensive and ambitious, exceeding the respective obligations of both parties under the WTO;

- to extend the coverage of products and services to be liberalised, as well as to take into account issues related to sensitive products and sectors of both parties;

- cover not only goods, but also aspects such as services, investment, government procurement, as well as trade and sustainable development;

- ensure adequate protection of intellectual property rights and appellations of origin, effective competition policies and a special agreement on sanitary and phytosanitary standards;

- establish an effective and binding dispute settlement mechanism to help resolve trade tensions between the EU and Mercosur.