The member countries of Mercosur agreed to a 10% reduction in the Common External Tariff (AEC) at the meeting of the bloc’s Common Market Council held this Wednesday, the Paraguayan Ministry of Foreign Affairs reported on Twitter.
#NOW | At the CMC meeting it was announced that in the PPT of #Paraguay ?? The reduction of the Common External Tariff by 10% was agreed, respecting the sensitivities of the States Parties and seeking a balance between competitiveness and the protection of our productive sectors. pic.twitter.com/w10qHEzEhV
– Ministry of Foreign Affairs (@mreparaguay) July 20, 2022
This reduction had been agreed by Paraguay, Brazil and Argentina, but did not have the vote of Uruguay because it asked for support for the bloc’s flexibility to give the initiative its go-ahead. Then reach an agreement with Brazil on several issues –among which were issues related to free zones-, Uruguay decided to support the project.
In addition, Mercosur and Singapore concluded negotiations for a Free Trade Agreement (FTA), reported the Minister of Industry and Commerce of the Asian country, Gan Kim Yong, in a video broadcast at the CMC meeting on Wednesday. The bloc is on track to sign an agreement with the Asian country, something that will depend on the bloc’s negotiating teams, Paraguayan Foreign Minister Julio Arriola said at the meeting.
As indicated by the Singapore authorities in the Council, the completion of the FTA comes after “five years of negotiations” between Mercosur and the Asian nation. At the beginning of May, negotiators from both parties met in Singapore, and then at the end of that month they met again in Asunción, Mercosur said in a statement.
“Singapore is an important trade and investment partner for the bloc. In 2021, Mercosur exports totaled 5,929 million dollars while imports reached 1,252 million dollars,” the bloc detailed through its official page.
The block stressed that the agreement will allow the “diversification of trade flows and the improvement of conditions for the establishment of investments between both parties”, in addition to “an update of the disciplines to the highest standards at a global level”.
