STiR coffee and tea magazine

34 STiR coffee and tea | 2024 Issue 3 (June / July) alks to implement the long-sought Mercosur trade agreement between the European Union and South America's major exporting nations remain stalled. In May Brussels' chief negotiator Rupert Schlegelmilch told Brazilian re- porters, "The agreement is very much alive. The fact is that the Commission is still negotiating," he said. The EU is preparing for swift approval at the conclusion of European Parliament elections. "We have a mandate from all the member states, including France," he told Folha de S. Paulo. Ratification of the agreement would enhance trade in Brazilian coffee and Argentine tea by lowering import barriers for finished goods such as roasted and soluble coffee and packaged tea. Once in place, over four years, the agree- ment would reduce to zero tariffs for roasted & ground and instant coffee, which are currently 9% for instant coffee and 7.5% for roasted & ground. European exports to Mercosur economies, including Argentina, Brazil, Para- guay, and Uruguay, currently face tariffs as high as 18%. Brazil's Ministry of Economy estimated the agreement could add $125 billion to Brazil's economy and increase European investments in Brazil by $113 billion over 15 years. Economists say the impact on the EU will be small, adding more than 0.3% GDP. The deal was announced in 2019 but awaits a unanimous decision of the individual common market countries. Ratification seemed imminent in December at the 63rd Mercosur summit in Rio de Janeiro. But French President Emmanuel Macron refused to sign, saying the agreement failed to meet aggressive environmental guarantees. Macron visited Brazil in March to discuss concerns about deforestation with President Luiz Inácio Lula da Silva. The French president stepped up his opposition following the meeting with Silva, saying, "as it is negotiated today, it is a very bad deal." By Dan Bolton T Mercosur free trade treaty negotiations on hold after French President Emmanuel Macron protests lack of environmental guarantees. Mercosur Free-Trade Treaty Still Stalled In January, outraged farmers across Europe protested rising costs and the competition of cheap food imported from Mercosur nations.

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