Uruguay will be able to export a wide range of products to the European Union with zero tariffs since the beginning of the Mercosur-EU agreement. According to the Ministry of Livestock, Agriculture and Fisheries (MGAP), the immediate elimination of tariffs will cover, among others, fishing products, bovine and ovine offal, fats and edible offal of bovines, fresh fruits (apples, pears, cherries and plums), legumes, nuts, raisins, leather derivatives, mineral water, beers, spirits, soy flour, corn, tops of worsted wool, fertilizers, fungicides and auto parts.
In general terms, which will be signed on January 17, the agreement establishes that around 70% of tariffs will disappear upon entry into force, while the rest will be progressively eliminated over periods of four, seven or up to ten years, depending on the product and its inclusion in the reduction baskets.
Progressive reduction
Other goods will access the European market with gradual tariff reductions. This group includes vegetables, horse meat, food plants and tubers, citrus fruits, broken rice, pet foods, wines, vegetable oils, food preparations, jams and jellies, preserved vegetables, tops, wool yarns and fabrics, beverage concentrates and plywood.
The ruling party highlights the positive impact for sectors such as citrus, fishing and leather, which had lost preferential conditions after the fall of the Generalized System of Preferences (GSP) in 2014. They also highlight the specific concessions of the European Union for sensitive products and of high export interest for Uruguay, such as beef, rice, honey, sugar, ethanol and dairy products.
Political endorsement and signature
The European Union gave political approval to the agreement in Brussels by qualified majority, despite the opposition of France, Poland, Austria, Ireland and Hungary. With this endorsement, the process enters its final stage, since the president of the European Commission, Ursula von der Leyen, and the president of the European Council, Antonio Costa, are expected to travel to Asunción to finalize the signature together with the foreign ministers of Uruguay, Argentina, Brazil and Paraguay (Mercosur member countries).
Negotiated for more than 25 years, the agreement seeks to deepen bi-regional exchange. For the European Union, it will mean greater facilities for exporting automobiles, machinery, wines and liquors to Mercosur; For Uruguay, better access conditions to one of the most relevant markets in the world.
