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  Félix Peña

INTERNATIONAL TRADE RELATIONS NEWSLETTER
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Steps to be taken for the effective implementation of the MERCOSUR-UE bi-regional agreement

por Félix Peña
October 2023


 

The entry into force of the bi-regional agreement between Mercosur and the EU remains uncertain. The hypothesis of a bilateral entry into force of the agreement that is finally concluded is still possible. If this were the case, a bilateral entry into force would not exclude the possibility that one of the member countries might not, in fact, ratify the agreement.

Beyond the uncertainties that could affect what is considered to be a valuable negotiation for both parties, it would be necessary to identify the steps that would need to be taken after signing the final agreement, if ratified by all Mercosur countries.

These subsequent steps will have the greatest impact on the achievement of the objectives set by Mercosur and each of its member countries when the bi-regional negotiating process was launched. They will also be the ones that have the greatest impact in terms of the extension of their effects to large sections of the respective populations.


The date of entry into force of the bi-regional agreement between Mercosur and the European Union remains uncertain. In this respect, it should be noted that the hypothesis of a bilateral entry into force of the agreement that is finally concluded is still considered possible. If this were the case, it could even affect the survival of Mercosur, since such a bilateral entry into force would not exclude the possibility that one of the member countries might not ratify the agreement.

In any case, beyond the uncertainties that may affect a negotiation that is considered valuable for both parties, it would still be necessary to identify the steps to be taken once the final agreement is signed, if it is ratified by all Mercosur countries.

These steps are not the only ones to be considered, but they are the ones that will have the greatest impact on achieving the objectives pursued by Mercosur and each of its member countries when the bi-regional negotiation process was launched. Above all, they are the ones that will have the greatest impact on extending their effects to broad sectors of the respective populations.

Three are the steps that can be considered the most relevant in terms of the possible impact of the agreement that is finally concluded between the current Member States. These are the steps that could ultimately have the greatest impact on the productive investment decisions of companies, especially in terms of training the human resources needed to operate in an economic space that is more diverse than the current one and who have the necessary knowledge to understand the significant cultural differences required to operate in EU countries.

The first step is to identify and adopt the necessary measures to enable companies operating in each of the Mercosur member countries to make the most effective use of the bi-regional agreement. These measures include those related to the financing of the investments needed to develop strategies aimed at taking advantage of the expansion of markets, especially those with which a company wishes to compete with its products and services.

A second step is to adapt the physical infrastructure of the countries concerned to the requirements for the effective implementation of a strategy to expand the markets in which their companies wish to compete.

Finally, a third step is to facilitate the processing of the information needed to implement the necessary strategy for knowing the markets to which companies will be able to gain access following the bi-regional agreement.


Recommended reading:


  • Brown Gordon; El-Evian, Mohamed, A.; Spencer, Michael; "A Permacrisis.. A plan to fix a fractured world", Simon &.Schuster - London 2023.
  • González Zorrilla, Gabriel, "Poker por el acuerdo entre Mercosur y la Unión Europea", DW 27/09/2023.
  • Heydon, Ken, "Working around the article XXI loophole", East Asian Forum, September 30, 2023
  • Hoekman, Bernard; Marcoidis, Petros C.; Nelson, Douglas, "Unilateral policies threaten the global trade order", East Asian Forum, October 1, 2023.
  • Tokola, Mark, "MC13 success critical to the liberal trade order", East Asia Forum, 26 September 2023.

Félix Peña es Director del Instituto de Comercio Internacional de la Fundación ICBC; Director de la Maestría en Relaciones Comerciales Internacionales de la Universidad Nacional de Tres de Febrero (UNTREF); Miembro del Comité Ejecutivo del Consejo Argentino para las Relaciones Internacionales (CARI). Miembro del Brains Trust del Evian Group. Ampliar trayectoria.

http://www.felixpena.com.ar | info@felixpena.com.ar


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