Negotiations on the EU-Mercosur Agreement have already been concluded since 2019. However, it has not yet been ratified. The German economy in particular would benefit greatly from this, as Klemens Kober, head of the trade policy, transatlantic relations and EU customs department at DIHK, points out.

In 2021, Germany exported goods worth more than 13 billion euros to the Mercosur country Brazil (Image source: Pixabay)

Latin America is becoming an increasingly important market

The Mercosur countries Argentina, Brazil, Uruguay and Paraguay are already important markets for German companies. More than 8,5000 German companies export there. Goods and services worth over 13 billion euros are exported to Brazil every year. At the same time, more and more companies see potential for themselves in Latin America.

Potential of the agreement

When the EU-Mercosur agreement comes into force, the German economy will be able to diversify its supply chains more quickly. Germany’s lead over competitor nations in terms of time can still be exploited through rapid ratification, Kober said. The market is now also heavily dominated by China, he said.

The agreement also offers an opportunity to promote sustainable trade with Latin America. Sustainability regulations are intended to ensure this.

The full article can be found on the DIHK website.

Source: DIHK