Mercosur-EU FTA to Have Negative Impact, Argentina Says

On Monday, Argentine Foreign Affairs Minister Santiago Cafiero described the Mercosur-European Union free trade agreement (FTA) as bad, as it will have "a negative impact on industry and agricultural exports" in the region.

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The Southern Common Market (Mercosur) is a South American trade block consisting of Argentina, Brazil, Paraguay, and Uruguay.

"Our administration has always proposed that the agreement be reopened because it does not reflect a balance where the two blocs both win," Cafiero said.

If the deal "is implemented as it is, exports would have to be restricted. It is a bad agreement," he said.

"Along with the other Mercosur partners, we have proposed an additional agreement, where not only environmental commitments are discussed, but also elements that will not be so harmful for the agricultural industry and its exports," he said.

Cafiero also called for heeding potential impact of the agreement on employment and investments to develop new economic sectors in the country.

In 2019, Mercosur and the EU reached a comprehensive trade agreement, which is still pending after Mercosur rejected environmental clauses that the EU attached to the trade deal earlier this year.