The Confederation of Danish Industry (DI) describes the free trade agreement that the EU has voted through today with Brazil, Argentina, Uruguay and Paraguay as a historic victory for the EU. The agreement, which has been 26 years in the making, establishes a free trade zone between the EU and the four South American countries. This is stated by the Confederation of Danish Industry in a press release.
According to the Confederation of Danish Industry, the agreement shows that the EU is still able to implement large trade agreements in a time characterized by increased protectionism. The agreement also gives European and Danish companies access to a market with around 300 million consumers.
- A long-awaited and much-needed victory for the EU countries and the EU's competitiveness, says Lars Sandahl Sørensen, CEO of the Confederation of Danish Industry.
Will create new opportunities for Danish companies
The Mercosur agreement will create the world's largest free trade zone with a total of over 700 million consumers. The European Commission has estimated that the member states' exports to the four countries could increase by around 366 billion DKK annually. For Denmark, exports are expected to increase by more than 13.5 billion DKK per year, especially within the mechanical engineering industry, the green sector and the food sector.
- In a world in transition, the Mercosur agreement will create completely new opportunities for Danish companies, and the increased export revenues will support important Danish export jobs, which are so crucial for us to maintain Danish welfare, says Lars Sandahl Sørensen.
According to DI, the EU has been losing market share in the Mercosur countries to China for a number of years, and the trade agreement can help change that development. At the same time, the organization points out that the Mercosur countries do not have other trade agreements of similar scope.
- This first-mover advantage gives Danish and European companies a clear competitive advantage in Mercosur compared to American and Chinese companies, says Lars Sandahl Sørensen.
Today, 85 percent of the EU's exports to the Mercosur countries are subject to tariffs, and tariffs can reach 35 percent. The agreement must now be processed and finally approved by the European Parliament in the coming weeks.
amp
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
