The agreement will remove the majority of tariffs on EU exports to Mercosur, making EU companies more competitive by saving them €4 billion worth of duties per year.
The EU agri-food sector will benefit from slashing existing Mercosur high tariffs on EU export products:
- Chocolates and confectionery (20%),
- Wines (27%),
- Spirits (20 to 35%),
- Soft drinks (20 to 35%)
The agreement will also provide duty-free access subject to quotas for EU dairy products (currently 28% tariff), notably for cheeses.
|
Product |
Current |
New Import volume |
Tariff |
|
200,000 tonnes p.a. |
99,000 tonnes p.a. (55% fresh, 45% frozen) |
7.5% |
|
|
Poultry |
+400,000 tonnes p.a. |
180,000 tonnes p.a. |
Duty free |
|
EU has been largest net exporter |
180,000 tonnes p.a. for refining
10,000 tonnes p.a. for Paraguay only |
Duty free. No new sugar quote will be created for Brazil.
Paraguay duty free |
|
|
Ethanol |
|
New 45,000 tonnes p.a. for the chemical industry
200,000 tonnes p.a. |
Duty-free
(in-quota rate of 1/3 of the current high duty (up to €19/hectolitre) will be opened for all other uses). |
|
Honey |
35,000 tonnes p.a. |
45,000 tonnes p.a. |
Duty-free (gradual duty reduction over a 5-year period). |
|
Rice |
100,000 tonnes p.a. |
60,000 tonnes p.a. |
Duty-free free (gradual duty reduction over a 5-year period) |
BETTER EXPORT OPPORTUNITIES FOR EUROPEAN FARMERS AND FOOD PRODUCERS
The agreement presents a balanced outcome that creates new opportunities for European farmers and food producers, while at the same time mitigates possible market pressure. European farmers and food businesses will gain unprecedented access to the countries of Mercosur, which represent a large market of 260 million people. This will be achieved by:
- removing high tariffs for main EU export products
- preventing imitation of EU traditional foodstuffs
- making food safety procedures clearer, more predictable and less cumbersome for EU exporters
