The Trade Pillar Of The Eu-Mercosur Association Agreement
Some producers, particularly in the milk and automotive sectors, have expressed timid concerns. However, they are still able to take advantage of machinery imports and innovation and efficiency in all sectors. Economists estimate that Brazil could generate $9.9 billion over the next 15 years and create about 780,000 new jobs. Other markets, such as EFTA, Japan and Canada, are in the early stages of trade negotiations with MERCOSUR and Brazil as they prepare for the free trade scenario. Past experience with the EU-Canada Trade Agreement (CETA) and the attempted EU-US Agreement (TTIP) has shown how opposed the alleged threats to free trade agreements are. Today, there are sectors that are not satisfied with the current agreement. In particular, agriculture and the meat sector in countries such as France, Spain, Poland and Ireland, as well as the European Farmers` Association Copa-Cogeca, have already opposed the agreement. The EU is already Mercosur`s main trading and investment partner.  In 2018, 20.1% of the trade bloc`s exports were exported to the EU.  Mercosur`s exports to the EU amounted to EUR 42.6 billion this year, while EU exports to Mercosur countries amounted to EUR 45 billion.  Mercosur`s largest exports to EU countries are agricultural products such as food, manufactured beverages and tobacco, plant products such as soybeans and coffee, and meat and other animal products.
 Among Europe`s largest exports to Mercosur are machinery, transport equipment and chemicals and pharmaceuticals.  In 2017, the EU exported 23 billion euros of services to the South American trading bloc, while around 11 billion euros of services arrived from Mercosur to Europe.  Cattle farming is the main driver of deforestation by Denasten and has been responsible for up to 80% of deforestation.   The current increase in the rate of destruction of tropical forests comes at a time when beef exports from Brazil are at record levels.  There are fears that the agreement could lead to even greater deforestation, as it expands access to the Brazilian beef market.  EU leaders responded to the criticism by saying that the terms of the agreement are not contrary to the objectives of the Paris climate agreement and that the trade agreement underlines a commitment to “rules-based trade”.  However, as Jonathan Watts points out, “there are countless reports of violations of the rules by Brazilian meat companies.”  Many experts believe that the environmental provisions contained in the current text of the agreement are “edented” because of the lack of enforcement powers  Brazil is a signatory to the Paris climate agreement, but President Bolsonaro criticized it and threatened to remove Brazil from office.  As mentioned above, deforestation of the Amazon has intensified under Bolsonaro.