19 May 2021 - 24 Sep 2021

Trade aspects of the EU-Mercosur Association Agreement

The study will focus on the trade impact of the EU-Mercosur Association Agreement for both, the EU and the Mercosur countries. The EU has until recently been Mercosur's most important trade and investment partner (overtaken now by China). While the relationship is very substantial both, exporters and potential investors until now still faced barriers in Mercosur markets.

The study will identify and analyse the goals and impact of the trade part of the Association Agreement including trade in goods (in particular, the agriculture and industrial sectors), services (including maritime), sanitary and phytosanitary measures (SPS), SMEs, and trade and sustainable development (including social, environmental, human rights, and enforceability aspects).

The overall Association-Agreement has a significant geopolitical relevance and could send out a strong sign against protectionism and unilateralism. If ratified, the trade part of the Association Agreement would establish the largest free trade zone the EU has ever created, covering a population of over 780 million, and consolidate the close political, economic and cultural ties between the two regions. Currently, EU-Mercosur relations are governed by the 1995 Interregional Framework Cooperation Agreement.

The study will provide an overview of the economic (trade, growth and employment) impact that the EU-Mercosur Association Agreement could create for both, the EU and the Mercosur countries and include future economic perspectives while also addressing the social and environmental impact of a reinforced partnership.

The report will consist of the following parts:

  1. The trade part of the EU-Mercosur Association Agreement: contents and possible consequences
  2. Economic, sustainability and regulatory effects of the EU Mercosur Association Agreement on the Mercosur countries
  3. The role of the European Parliament and civil society

 

Project funding: European Parliament

Project leader: CASE

Project partners:  University of Göttingen, University of Innsbruck, LSE, German Institute for International and Security Affairs (SWP)