Euratex, ABIT hope for speedy conclusion of EU-Mercosur FTA

An inter-regional Framework Cooperation Agreement, which was initiated in the year 1999, presently governs the trade practices between the EU and Mercosur.

The EU-Mercosur negotiations were re-launched in May 2010 after a series of talks. However, the concerned parties reached no conclusion and the discussions were again paused in 2012. In May 2016, the EU and Mercosur exchanged offers for the first time since the re-launch, followed by a discussion on trade rules in October 2016.

European Apparel and Textile Confederation (Euratex) and Brazilian Textile Industry (ABIT) have together hailed the dialogues made on EU-Mercosur FTA and are optimistic that the deal will be finalised soon after the recent round of negotiations that took place in Brasilia.

Both the parties are now stressing on concluding the FTA and in the last few months, they’ve discussed various subjects related to textile and apparel trade. The topics include regulatory cooperation, customs processes, technical blocks to trade and rules of origin.

In a press communique issued, Klaus Huneke, President, Euratex and Fernando Pimentel, President, ABIT stated that there’s also a strong emphasis on the sustainable manufacturing of high-quality products.

Euratex and ABIT also promoted well-balanced rules of origin principles to benefit both European and Mercosur countries and increase trade and investments in the textile and garment sector. Argentina, Brazil, Paraguay and Uruguay are Mercosur-member nations.

The associations are now entering the final stage of talks and challenging issues are left. “We need support from industry stakeholders and a political will to conclude the agreement and bolster trade,” the statement mentioned. Once finalised, the FTA will not increase boost business but also create employment opportunities in the related regions, it added.

Reports claim that the EU’s exports to the region increased from € 21 billion in 2005 to € 46 billion in 2015, while Mercosur’s exports jumped from € 32 billion to € 42 billion during the same period.