Agreement between Mercosur and the European Union
The “Agreement between Mercosur and the European Union – Comprehensive Study of its Clauses and Effects,” by Luciana Ghiotto and Javier Echaide, is yet another example of how governments negotiate trade agreements behind the backs of their citizens, without any democratic oversight or scrutiny. A negotiation that took 20 years was finally concluded in six months after Jair Bolsonaro took office in Brazil, while Mauricio Macri was president of Argentina. There were no consultations with SMEs, labor unions, or social sectors in either country.
The report will be presented virtually on Friday, June 5th at 3:00 PM Argentina time with a panel that includes Argentine diplomat María del Carmen Squeff (FORMER AMBASSADOR OF HER COUNTRY IN FRANCE) and German MEP Anna Cavazzini (Alliance 90 / The Greens).
Some conclusions from the Report:
Mercosur and the EU have undeniable economic asymmetries. Once in force, this agreement will maintain and deepen existing asymmetries.
The increase in the export of agricultural products to the EU will lead to a deepening of the agribusiness model.
Mercosur countries could suffer further deindustrialization and an exacerbation of the negative environmental and social consequences that result from the deepening of production based on monocultures and the exploitation of minerals.
The agreement will have a direct impact on productive sectors that currently generate a significant amount of employment, especially in the auto parts, machinery, chemical, textile and footwear sectors.
The agreement will lead to the dismantling of regional value chains that have functioned since the bloc's creation.
The big winners from this agreement are the large European corporations. These are economically stronger and better positioned than their Mercosur counterparts.
The agreement opens up new markets, especially for EU companies, while preventing the use of public policies to regulate investments, services, e-commerce, or the movement of capital.
The agreement will lead to an increase in greenhouse gas emissions and expand deforestation.
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