Eu Mercosur Trade Agreement Wiki

Cattle farming is the main driver of deforestation by Den Assund and has been responsible for up to 80% of deforestation. [14] [18] The current increase in the rate of destruction of tropical forests comes at a time when beef exports from Brazil are at record levels. [14] There are fears that the agreement could lead to even greater deforestation, as it expands access to the Brazilian beef market. [14] EU leaders responded to the criticism by saying that the terms of the agreement are not contrary to the objectives of the Paris climate agreement and that the trade agreement underlines a commitment to “rules-based trade”. [14] However, as Jonathan Watts points out, “there are countless reports of violations of the rules by Brazilian meat companies.” [14] Many experts believe that the environmental provisions contained in the current text of the agreement are “edented” because of the lack of enforcement powers [10] Brazil is a signatory to the Paris climate agreement, but President Bolsonaro criticized it and threatened to remove Brazil from office. [19] As mentioned above, deforestation of the Amazon has intensified under Bolsonaro. He is accused of weakening Brazil`s ministry of the environment,[10] encouraging the expansion of agriculture and mining in the region[10] and turning a blind eye to illegal destruction. [20] The current Environment Minister, Ricardo Salles, has imposed the lowest number of fines for illegal deforestation in a decade. [21] As world leaders met at a G20 summit in Japan amid protectionist concerns, EU Trade Commissioner Cecilia Malmstrom told a news conference that the agreement was a “strong and clear message” to support trade opening. France and some other EU countries fear the effects of a sharp increase in beef imports, while environmental groups, whose influence is stronger in the new European Parliament, say the deal could worsen deforestation. The EU is already Mercosur`s main trading and investment partner. [1] In 2018, 20.1% of the trade bloc`s exports were exported to the EU. [8] Mercosur`s exports to the EU amounted to EUR 42.6 billion this year[8], while EU exports to Mercosur countries amounted to EUR 45 billion.

[8] Mercosur`s largest exports to EU countries are agricultural products such as food, manufactured beverages and tobacco, plant products such as soybeans and coffee, and meat and other animal products. [8] Among Europe`s largest exports to Mercosur are machinery, transport equipment and chemicals and pharmaceuticals. [8] In 2017, the EU exported 23 billion euros of services to the South American trading bloc, while around 11 billion euros of services arrived from Mercosur to Europe. [8] The environmental effects for countries exporting agricultural products from wetlands or other environmental regions, for example Brazil, have been increasingly documented by environmental groups that oppose EU trade agreements. [138] In addition, other industries with significant environmental impacts, such as mining, are developing in areas with low regulatory burdens, such as South America and Asia. Inter-professional organisations have argued that increasing economic performance in these sectors will only strengthen standards in participating countries and that EU trade agreements should go hand in hand with efforts to harmonize environmental legislation. [139] The EU has bilateral partnership and cooperation agreements with Argentina, Brazil, Paraguay and Uruguay.