EU-Mercosur trade deal will require 'sacrifices' from Argentina, experts warn
Experts warn that the free-trade agreement between the European Union and Mercosur will demand significant concessions from Argentina's industry as tariffs fall, even as it opens new opportunities for the country's farm exports. The deal remains politically sensitive across the bloc.
Experts say the long-negotiated free-trade agreement between the European Union and Mercosur will bring both opportunities and costs for Argentina. Once in force, the deal would gradually lower tariffs on European goods entering the South American market.
Analysts speaking to the Buenos Aires Herald said the tariff cuts could increase competitive pressure on domestic industries such as autos and machinery. In return, farm products including beef, grains and soy could gain wider access to the European market.
Final ratification of the accord remains sensitive because of objections from farmers in some EU member states. Experts said Argentina may need to design sector support and transition periods to manage short-term adjustment costs. The process is expected to become clearer in the coming months.
Read next
China signals openness to cutting EU trade surplus as Brussels toughens stance
China has signalled willingness to reduce its large trade surplus with the European Union, according to the South China Morning Post. The move comes as Brussels adopts a tougher stance on trade imbalances and market access for European companies.
Nigeria's Tinubu backs regional integration as China-built ECOWAS HQ opens
Von der Leyen unveils major EU support package on strategic Armenia trip
Uruguay and Chile agree to jointly fight organized crime after summit
