STiR coffee and tea magazine

STiR coffee and tea 35 www.dethlefsen-balk.us Phone: (312) 628-8917 info@dethlefsen-balk.us CELEBRATING 20 YEARS OF PASSION FOR Tea & Accessories Get in touch to stay in the loop! CHICAGO, IL NEW FLAVORED COFFEE & DRIP COFFEE Coffee now launching: Decades of Indecision 1979 1991 1994 1996 1999 2007 2019 2023 2024 Argentina, Brazil, and Paraguay signed a tripartite trade agreement. Bolivia becomes an associated state, a status later extended to Chile, Colombia (2004), Ecuador (2004), Guyana, Peru (2003), and Suriname. Venezuela (2006) was admitted as a full member of the bloc in 2012 but was suspended in 2016. Founding member Paraguay was suspended in 2012 and reinstated in 2013. Bolivia (2015) seeks full member status. An FTA was negotiated in principle, and the EU began a ratification process for all member countries. However, the pandemic and concerns over deforestation slowed the process. A four-nation common market with Uruguay is established (Treaty of Asuncion). Negotiations for a proposed EU-Mercosur Free Trade Agreement begin. Negotiations with Brazil's President Luiz Inacio Lula da Silva on deforestation energize discussions holding up ratification. Bolivia was admitted as a full member. In December, French President Macron withheld French support until the national election in June 2024. Protocol of Ouro Preto establishes customs union. Mercosur Parliament is established in Uruguay. European elections in June likely determine the treaty's fate, which may devolve into individual trade agreements that do not require unanimous ratification by the EU. The economic justification for the Southern Common Market (Mercosur) treaty with Eu- rope is tested and sound. Trade between the European Union and Mercosur is compa- rable, with $67 billion in Mercosur imports landed in the EU and $60 billion in EU goods exported to Mercosur countries in 2022. Europe needs South American lithium, nickel, graphite, and a bounty of agricultural commodities, including Brazilian coffee. Coffee exports from Mercosur countries total $1.6 billion in 2024. Tea exports, primarily from Argentina, total $9.8 million in 2024. EU ratification will mark a pivotal advance in the international trade landscape. How- ever, the politics of the world's third-largest political bloc remain as volatile as they were on the day negotiations began in June 1999. Politics may scuttle the effort or result in simple multilateral trade deals without treaty assurances, which are binding and become part of international law. Since December, there has been discussion of splitting up the Beset by Setbacks, Mercosur Free Trade Treaty Faces Final Hurdle economic and political elements, as free trade agree- ments require only executive approval from the Council of the European Union (heads of state) and the Euro- pean Parliament instead of ratification by all national and regional parliaments, according to the Center for Strategic & International Studies. Various political concerns, initially stemming from the farm sector, led to delays, with the most significant opposition voiced in France and the most enthusiastic support in Germany. Then came the Great Recession in 2007, which drained the urgency. The pandemic ham- pered ongoing conversations on the final document at annual gatherings chaired most recently by Brazil, a country wary of deforestation requirements. Twenty years after negotiations began -- to the day -- Argentina, Brazil, Paraguay, and Uruguay presented a principal agreement that the EU negotiators described as "an ambitious, balanced, and comprehensive trade agreement." The trade zone described in the document gener- ates $2.2 trillion annually, which is about 20% of global GDP (gross domestic product). The markets consist of 450 million Europeans and 295 million South Ameri- cans. Trade within the bloc grew from $4 billion initially to $41 billion in 2010 but has declined, increasing only 3% in 2023. Political disagreements have stunted prog- ress toward a common market similar to the EU. Arguing in favor of treaty ratification is that 25 years ago, China was a minor trading partner in South Amer- ica that has since invested heavily in Mercosur coun- tries, including Bolivia. Trade with China ($15.7 billion or 27% of total exports) from the four countries in 2024 exceeds combined trade with the United States ($7.1 billion or 12% of total exports) and the EU ($7.2 billion, also 12%). China's bilateral trade with the region is ex- pected to reach $500 billion by 2025. Europe seeks to reduce its dependency on Chinese trade, and the US hopes to discourage South America from deepening its ties to China.

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