Van Dijck: “The trade agreement between the European Union and Mercosur opens doors for Flemish companies”

The free trade agreement between the European Union and Mercosur, the customs union between Argentina, Brazil, Bolivia, Uruguay and Paraguay, was officially sealed today. MEP Kris Van Dijck comments enthusiastically: “In an unstable world with many geopolitical tensions and the rise of protectionism, this is a hopeful sign for an open economy such as Flanders.”

The free trade agreement between the European Union and Mercosur was officially signed today at a summit of Latin American countries in Uruguay. This gives the EU easier access to a previously fairly closed market of 260 million consumers with high import tariffs, complicated administrative procedures and various different technical standards. 

Good news, says Kris Van Dijck: “It will enable our companies to gain an edge over American and Asian competitors. Moreover, there is now also additional emphasis on sustainable development, including commitments to corporate social responsibility, the conservation and management of the Amazon rainforest and binding labour and environmental standards that Mercosur countries must respect.”

New opportunities for Flanders

With its open economy that relies heavily on exports and generates prosperity and jobs, trade agreements are crucial for Flanders. Van Dijck welcomes the trade agreement with open arms: “Without this geostrategic agreement, we risked pushing these countries into the arms of China, for example, which has little to no regard for sustainability, the environment and laying down rules.”

Addressing agricultural concerns

In recent weeks, some agricultural sectors opposed the agreement for fear of being flooded with agricultural products. They point to the use of different production standards in the Mercosur countries. However, it is questionable whether it is worthwhile for Mercosur producers to comply with our high standards for antibiotics and hormones. As a net exporter of agricultural products to Mercosur, this presents an ideal opportunity for Flanders. 
“The CETA saga risks being repeated. At that time, the French and Walloon agricultural sectors also screamed blue murder about the trade agreement with Canada. In retrospect, that fear turned out to be unfounded, which even President Macron had to admit,” says Kris Van Dijck.

What now?

To avoid market disruptions, a European aid package will be introduced exclusively for the agricultural sector. In addition, there is ongoing quality control, certification and monitoring of what is imported into the Union. Any Member State can sound the alarm. Now that the official end of the negotiations has been announced, the texts are undergoing one more legal and linguistic polishing. They will then be submitted for approval by the Council. Finally, the agreement will go through both European and national approval procedures.