In the slipstream of the debate over the controversial Mercosur Free Trade Agreement between the EU and South America, Brussels has more or less sealed a similar project in another part of the world – with New Zealand.
As the EU commission announced on Sunday, in addition to a free trade agreement, an agreement was reached on a research and exchange program worth billions. At the signing, Ursula von der Leyen, President of the European Commission, said the deal could increase trade between the two partners by an estimated 30 percent. The next step is for the European Parliament. Negotiations started in 2018.
EU investment in New Zealand could increase by up to 80 percent, European Commission Vice-President Valdis Dombrovskis said. According to EU countries, EU exports to New Zealand alone could grow by €4.5 billion a year. According to the information, companies can save around 140 million euros in customs duties in the first year. The agreement is expected to enter into force in 2024.
“Time window” for Mercosur agreements
The EU Commission and, for example, Germany and Spain, the current EU Council presidency, also want to implement the free trade agreement with the Mercosur area in South America, which has been negotiated for a long time but is especially controversial in Austria. “There is an opportunity for Lula’s presidency and the Spaniards really want to get it done,” Brazil’s business delegate Günther Sucher said in an APA interview on Sunday. But lately there have been more critical voices in South America. The government in Austria is also obliged to say no to the agreement on the basis of a parliamentary resolution.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
