Representing a broad range of industries, 26 European business associations, have issued a joint declaration expressing their full support for the rapid ratification of the EU-Mercosur Partnership Agreement.
The members of these associations account for a significant portion of the total trade between the EU and the Mercosur region, which reached over €153 billion in goods and services in 2024. They also represent much of the mutual investment, which stood at approximately €380 billion in 2023.
The business leaders emphasized, in an unprecedented time when the rules-based global order is under critical threat, this free trade agreement serves as a vital tool for the EU’s diversification strategy. They consider it a critical component for safeguarding the EU’s long-term competitiveness.
According to calculations from the EU’s Directorate-General for Trade (DG Trade), the agreement is projected to generate substantial economic benefits by 2040. It is expected to add €77.6 billion to the EU’s GDP. It would also add €9.4 billion to Mercosur’s GDP.
Additionally, the agreement is also forecast to boost EU exports to Mercosur by 39 per cent Mercosur exports to the EU by 17 per cent.
The EU-Mercosur Agreement is expected to deliver increased market access and better access to resources while protecting key European domestic sectors, diversifying secure supply chains, and encouraging investment for both regions.
Furthermore, the pact will deepen cooperation on sustainable development, specifically in areas like combating climate change, conserving biodiversity, and advancing labor and social rights.
