Current pro-tempore president of Mercosur, our prez. M. Macri, with the support of Brazilian president Mr. Bolsonaro, finally made it and signed the EU-Mercosur agreement which has been sought after for 20 years.
The European Union and Mercosur reached today a political agreement for an ambitious, balanced and comprehensive trade agreement. The new trade framework - part of a wider Association Agreement between the two regions – will consolidate a strategic political and economic partnership and create significant opportunities for sustainable growth on both sides, while respecting the environment and preserving interests of EU consumers and sensitive economic sectors.
Display MoreElimination of customs duties
The agreement will, over time, remove duties on 91% of goods that EU companies export to Mercosur. For example, Mercosur countries will remove high duties on industrial products, such as:
o Cars (taxed today at 35%)
o Car parts (taxed at 14 to 18%)
o Machinery (taxed at 14 to 20%)
o Chemicals (taxed up to 18%)
o Clothing (taxed at up to 35%)
o Pharmaceuticals (taxed at up to 14%)
o Leather shoes (taxed at up to 35%)
o Textiles (taxed at up to 35%)
The agreement will also progressively eliminate duties on EU food and drink exports, such as:
o Wine (taxed today at 27%)
o Chocolate (taxed at 20%)
o Whiskey and other spirits (taxed at 20 to 35%)
o Biscuits (taxed at 16 to 18%)
o Canned peaches (taxed at 55%)
o Soft drinks (taxed at 20-35%)
The agreement will also eliminate import duties on 92% of Mercosur goods exported to the EU.
It looks like British tea will still be off limits, but you can drink your sorrow in the finest Scottish whiskey!
