New study on Mercosur: A bad deal for climate and environment

by Anna Cavazzini | 17 Jan 2020
On 28 June 2019 the European Union and the Mercosur member countries (Argentina, Brazil, Paraguay and Uruguay) concluded talks on a free trade agreement between the two blocs, after 20 years of negotiations. Despite the fact that trade agreements being negotiated today are establishing the framework for inter- national economic exchange for decades to come, the EU-Mercosur agreement barely acknowledges the importance of tackling the climate crisis. The Paris Agreement is mentioned in its non-enforceable Trade and Sustainable Development chapter, but the content and effect of the trade disciplines comprehensively covered in the rest of the text run absolutely contrary to climate objectives. If implemented, they would lock- in and deepen an unsustainable and imbalanced relationship between the two economic blocs.

The study offers a comprehensive review of the disciplines and mechanisms covered in the hundreds of pages of text which make up the agreement, and of their potential effects. It covers all chapters published so far, addressing changes to trade flows in goods and services, rules, standard-making and non-tariff barriers to trade. The study is based on a textual analysis of the agreement itself, while also integrating secondary literature, impact assessments, and the perspectives and analyses of stakeholders on the agreement.

Anna Cavazzini comments: „The Mercosur Agreement damages the environment, climate and small farmers. The Mercosur agreement undermines the Green Deal. The Mercosur agreement leaves behind cheap meat imports and deforested rainforest, which runs against the possibility of a sustainable economic transition. The fight against climate change means we have to stop this Mercosur deal.“

Download the summary of the study
Download the full study

Author: Anna Cavazzini
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