EU-Mercosur Agreement

A Strategic Opportunity for Companies in Europe and South America: Why Alonso & Associates?

 

Does your European capital goods company want to sell to South American companies in the chemical, agri-food, or mining sectors?

As a Paraguayan, Uruguayan, Brazilian, or Argentinian business owner, are you considering increasing exports of food, leather, or minerals to the EU?

As a European company, are you looking to create a joint venture in one of these countries to manufacture high-value-added medicines or food products for Mercosur’s growing middle class?

Or do you want access to the public contracts that have been largely closed off in these countries until now?

These are just some of the pressing questions at a time when the European Commission has announced that the EU-Mercosur Agreement will begin to be applied provisionally, presumably on May 1st. This marks the beginning of a new era for European and South American companies seeking to grow in strategic markets.

With this agreement, the European Union and the Mercosur countries—Brazil, Argentina, Paraguay, and Uruguay—create one of the world’s largest trade areas, connecting more than 700 million consumers.

What changes for your company?

✔ Reduction and elimination of tariffs

✔ Preferential access to new markets

✔ Greater legal certainty and regulatory predictability

✔ Facilitation of trade and investment

High-potential sectors

From Mercosur to the EU, the sectors with the greatest potential are coffee; cocoa; hides and leather; mining and critical minerals; and agribusiness and related products. From the EU to Mercosur, these sectors include agricultural and industrial technology; machinery; renewable energy; and professional and financial services.

A competitive advantage for those who act early

The provisional application opens an immediate window of opportunity. Companies that structure their strategy now will be able to:

• Optimize their tariff structure
• Review supply chains
• Establish strategic alliances
• Adapt to European or South American standards before their competitors.

In a global context of increasing trade fragmentation, the EU-Mercosur axis is consolidating itself as a key platform for growth and diversification.

If your company wants to expand in Europe or Mercosur, now is the time to design the right strategy. Why Alonso & Associates?

• We have nearly 40 years of experience working with European institutions and clients on both sides of the Atlantic.
• We understand European regulations for accessing a market of more than 450 million consumers: customs, technical standards, health and safety, and the environment.
• We understand the EU decision-making process and which bodies are involved.
• We have an extensive network of contacts on both sides of the Atlantic.

 

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