Euratex joins several other European fashion industry associations as well as those representing other industries and businesses in declaring the EU-Mercosur Agreement will be a “critical element in ensuring the EU’s long-term competitiveness”.
The associations, which include the European Footwear Confederation (CEC), the European Branded Clothing Association (EBCA) and the Confederation of National Associations of Tanners and Dressers of the European Community (COTANCE), state: “In this unprecedented time when the rules-based global order is being critically undermined, this free trade agreement represents a beacon in the EU’s diversification strategy.”
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Together, the associations’ members cover a significant portion of the total trade in goods and services of over €153bn ($176.86bn) in 2024 between the EU and the Mercosur region, as well as the approximately €380bn of mutual investment in the two regions in 2023.
By 2040, according to DG Trade’s calculations, the agreement is expected to add €77.6bn to the EU GDP and €9.4bn to the Mercosur GDP.
At the same time, the agreement will result in a 39% increase in EU exports to Mercosur and a 17% increase in Mercosur exports to the EU.
The associations describe the EU-Mercosur as a modern agreement that is driven by modern principles.
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By GlobalDataThey say: “It will deliver increased market access and improved access to resources, while preserving key sectors in European domestic markets, diversifying secure supply chains, and fostering investments for both sides. It will also help us deepen our cooperation on sustainable development, in areas such as fighting climate change, preserving biodiversity, and advancing labour and social rights.”
The European businesses explain they “wholeheartedly support” the EU-Mercosur Agreement and call on the Council and European Parliament to swiftly ratify the EU-Mercosur interim Trade Agreement (iTA) and the EU-Mercosur Partnership Agreement (EMPA).
To this end, they say it is key to “streamline the ratification process and to ensure timely completion and avoid procedural delays”.
The associations add: “This is a crucial opportunity for Europe which will support growth and prosperity for one-fifth of the global economy – benefiting about 750m people.”
