Joint Statement by 78 Business Associations on EU-Mercosur Free Trade Agreement Negotiations

We are writing to you on behalf of 78 business associations from the EU and Mercosur representing a wide array of industries and other businesses. Together, our members cover a significant portion of the total trade in goods and services of over 159 bn Euros in 2022 between the EU and the Mercosur region. The importance of our economic partnership is further highlighted by the significant levels of mutual investment in our two regions (approximately 380 bn Euros). These trade and investment flows are crucial for sustaining millions of jobs on both sides, contributing significantly to our economic strength. Therefore, we call on you to prioritise the swift conclusion of the EU-Mercosur free trade agreement negotiations, a step that is key for preserving our joint competitiveness.

In times marked by geopolitical turmoil and numerous crises, supply chain disruptions and strains on industries are becoming increasingly prevalent. Deepening our well-established trade relations between the EU and Mercosur is critical for ensuring the resilience of our economies. The EU-Mercosur agreement is driven by modern principles and promises to pave the way for progress in key areas which are vital for our partnership and our mutual prosperity. It enables us to advance our commitment to free, fair, and sustainable trade. It will deliver market access, diversify supply chains, foster investments and help us to deepen cooperation on sustainable development in areas such as climate change, forest preservation, social and labour rights based on elevated standards.

We believe that the current moment presents a crucial window of opportunity to conclude and ratify an agreement between key strategic partners which would cover one-fifth of the global economy and contribute to economic growth and job creation – benefiting about 750 million people in our two regions. We are convinced that leaders on both sides should pursue their engagement to ensure that this opportunity is seized. The EU-Mercosur agreement will support the resilience of our industries by strengthening supply chains, opening up new markets for our companies and ensuring a stable provision of inputs.

We therefore call on you to take all necessary steps to definitively conclude the negotiations, thus delivering a positive impetus for economic recovery and development that is much needed on both sides of the Atlantic.