Brussels/Bratislava – The European Union has reached a significant milestone by finalizing a historic trade and investment agreement with the Mercosur bloc, which sends a powerful message globally about the potential for collaboration through the reduction of tariffs and trade barriers. This sentiment was expressed by Maroš Šefčovič, the European Commissioner for Trade and Economic Security, during an interview with Slovak media in Brussels.
In his recent capacity within the EU executive, Šefčovič played a key role in concluding negotiations that have been ongoing for over twenty years with Argentina, Brazil, Paraguay, and Uruguay.
He highlighted that citizens of Slovakia, like their fellow EU residents, should recognize the significance of this agreement, as it will nearly eliminate tariffs on approximately 91 percent of products traded between the two large trade blocs.
“For Slovakia, this means that our car exports to Mercosur—currently valued at around 200 million euros—will see tariffs reduced from 35 percent to zero. Similarly, for engineering products, optical devices, and plastics, where tariffs are currently over 20 percent, they too will ultimately be eliminated,” he explained.
Šefčovič noted that the total trade volume between Slovakia and Mercosur stands at about 350 million euros. With the removal of these tariffs, significant annual savings are anticipated for all EU countries.
“For the EU as a whole, this agreement represents an annual savings of four billion euros in customs duties alone. This makes it a historic deal that holds both economic significance and a strong geopolitical message,” asserted the Slovak Commissioner.
He emphasized that at a time when many major global economies are considering raising tariffs or trade barriers, the agreement between the EU and Mercosur sends a clear message of commitment to reducing barriers, fostering cooperation, enhancing trade, creating jobs, and opening new investment opportunities for businesses,” Šefčovič concluded. (December 11)
“For the EU as a whole, this represents an annual saving of four billion euros just on customs duties. From this perspective, it is indeed a historic agreement.” – Maroš Šefčovič on the EU – Mercosur deal
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