A coalition of European business associations representing different sectors have urged for the ratification of the EU-Mercosur agreement, the largest and most ambitious trade agreement ever negotiated by both sides. The agreement will help establish better trade links between the two. It will unlock growth and help both regions recover from the current economic and public health crisis, invest in the green transition and diversify global supply chains and the region’s core market base.

The agreement calls for the most advanced sustainable development provisions that will foster partnership, help mitigate climate change and bind both sides to effectively implement the Paris Agreement. Unilateral legislative initiatives at EU level, such as upcoming initiative on deforestation and the review of existing rules on timber trade and fight against illegal logging will enhance this cooperation and effectively ensure that exports to the EU will not contribute to deforestation or soil degradation.

The agreement includes enforceable commitments on workers' rights and environmental protection through a dedicated dispute settlement mechanism that includes an active role for civil society organizations and calls on the expertise of international bodies, whose reports and recommendations must be made public. In case of non-respect of any of these provisions an automatic mechanism will trigger formal government consultations.