- Posted by Marina
The free trade agreement between Mercosur and the European Free Trade Association (EFTA), a block made up of Switzerland, Norway, Iceland and Liechtenstein, provides preferential access to the main agricultural products exported by Brazil, with the elimination of tariffs or concessions. of quotas.
Some of the sectors that will benefit from the deal are beef, chicken, corn, soybean meal, sugarcane molasses, honey, roasted coffee, fruit and fruit juices.
Negotiations between the two blocks began in January 2017 and were concluded after ten rounds.
With a GDP of $ 1.1 trillion and a population of 14.3 million people, EFTA is the ninth largest player in world goods trade and the fifth largest player in services trade.
The Ministry of Economy estimates that the Mercosur-EFTA agreement will increase Brazilian GDP by US $ 5.2 billion over a 15-year period. Another projection is the growth of US $ 5.9 billion and US $ 6.7 billion in total Brazilian exports and imports, respectively, totaling an increase of US $ 12.6 billion in Brazilian trade. A substantial increase in investments in Brazil of around US $ 5.2 billion is expected over the same period.
In 2018, the trade flow between Brazil and EFTA totaled US $ 4.5 billion, with exports of US $ 1.7 billion, mainly composed of gold, chemicals such as aluminum oxide, coffee, soy, meat and various food preparations. , and imports of US $ 2.8 billion, with emphasis on pharmaceuticals and organic chemicals, machinery and equipment, oil and gas, fish and crustaceans.
Source: Agricultural News