Mercosur: Craftsmen hope for approval from the EU Parliament

The Mercosur free trade agreement between the EU and several South American countries is nearing completion. From the perspective of the German Confederation of Skilled Crafts (ZDH), the agreement can contribute to and strengthen the competitiveness of the economy.

The Mercosur free trade agreement between the European Union and Brazil, Argentina, Uruguay, and Paraguay is on the verge of being signed. Negotiations have been ongoing since 1999. The member states have already approved the agreement. Now, only the approval of the [European Union] is needed. EU Parliament.

The skilled trades sector hopes the agreement can be finalized soon. "After some 25 years of difficult negotiations, the EU is on the verge of signing the free trade agreement with the Mercosur bloc. Now it is up to the European Parliament to pave the way for it," says Holger Schwannecke, Secretary General of the Central Association of German Crafts (ZDH).

Cheaper shopping possible

"From the perspective of the skilled trades, there are compelling economic and geopolitical reasons for rapid ratification and implementation: easier access to the South American market, reduced costs for skilled trades businesses through the reduction of tariffs, geopolitical considerations, and greater strategic independence for Europe."

For craft businesses, a closer partnership between German industry and the members of the Mercosur customs union offers significant opportunities. Duty-free or reduced-duty imports of important intermediate goods such as tropical timber, leather, metal parts, and machinery could lead to more affordable purchasing, thereby noticeably reducing costs and strengthening competitiveness.

Greater resilience and planning certainty

Increased cooperation with the Mercosur countries would also contribute to a diversification of supply chains and strengthen multilateral trade, which is also a positive development for craft businesses in light of current geopolitical conflicts. "The EU-Mercosur agreement would be an important step towards greater economic resilience and planning certainty."

Mercosur trade agreementThe Mercosur agreement is the EU's largest interregional free trade agreement to date, creating a common market of approximately 780 million people. The EU is the Mercosur countries' second-largest trading partner after China. The Mercosur countries themselves also rank among the EU's top ten trading partners, exporting goods such as minerals, food, and beverages. The agreement opens up new investment opportunities for German companies in the region. Through these investments, the German economy can participate in the economic development of the Mercosur countries – a win-win situation for an inclusive and resilient global economy.
Source: Federal Ministry for Economic Cooperation and Development

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