Commenting on the announcement made this Friday (6) of a trade agreement between Mercosur and the European Union, the vice-president of the Republic and minister of Development, Industry, Commerce and Services, Geraldo Alckmin, classified the day as “historic and strategic ”. “After 33 years of Mercosur and more than 20 years of negotiations, the agreement is finally announced.”
“It is the largest agreement between blocks in the world. We are talking about more than 700 million people”, said the vice president, highlighting the significance of the agreement “in a polarized and fragmented world”. “This is proof of dialogue, of good politics.”
Alckmin recalled that the agreement will not take immediate effect for reasons such as the need to translate into a total of 24 languages. “Then, it needs to go through the European Commission, the European Parliament and internalize here, in the four Mercosur countries.”
“Bolivia, if it wants, will also be able to integrate it later on,” he said. For Alckmin, the agreement opens up opportunities. “We are talking about 27 countries in the European Union, some of the richest in the world. Many opportunities that can help make GDP [Produto Interno Bruto] of Brazil to grow more, Brazilian exports to grow more, income and employment to grow more, and to bring down inflation.”
“It is an extremely positive agenda. After years and years of negotiation, the announcement of this agreement is finally being celebrated”, he highlighted.
Next steps
According to the vice president, it is difficult to set a date for the formal signing of the agreement. He highlighted that the next steps include, in addition to translation, voting, by qualified majority, in the European Council, and, by simple majority, in the European Parliament.
Voting then takes place in the respective countries that make up Mercosur – Brazil, Uruguay, Argentina and Paraguay. “Then, it will be immediate.” “Imagine a situation that we have internalized here and in another neighboring country, not yet. For us, it’s already worth it.”
“The terms of the agreements have already been agreed. It can no longer be changed. A country that, by chance, has a disagreement can no longer change the terms of the agreement that was concluded”, stated Alckmin.
Resistance
Asked about the position of countries that still resist the agreement, such as France, the vice-president said he hoped “this will be resolved”. “As you announce and celebrate the agreement, it is done. The agreement is a win-win where something is given up, something is gained on the other side, there is a comparative advantage here, a difficulty there.”
“I think we will overcome. In the case of Brazil, we had support from three production sectors: the primary, agricultural sector; the secondary sector, industry, especially processing; and commerce and services. We are very optimistic. Mercosur was limited in its agreements for a long time.”
Projections
According to Alckmin, studies show that Brazilian exports to the European Union could grow by 6.7%, while, in services, the rate would be 14.8% and, in the manufacturing industry, 26.6%.
“The agreement is good for our countries here in Mercosur, it is good for the European Union, but it is also good for the world, for global geopolitics. At a time of fragmentation, of political tension throughout the world, two large blocs opened the market, signed a treaty, a great partnership.”
