Abstract

In June 2019, the European Union and Mercosur reached a political agreement in order to sign a comprehensive free trade agreement (FTA), which aims to increase interregional trade and to further develop cooperation in non-commercial areas, such as food security and labor regulations. The EU has a normative power through which it intends to export its values and standards. Upon the ratification of this agreement, MERCOSUR and its Member States will certainly need to reform their legal orders so as to align themselves with the food security international standards such as the International Union for the Protection of New Plant Varieties. It may also have an impact upon intellectual property regulations. Labor standards constitute another key aspect of the non-commercial interests of this agreement. In order to avoid social dumping, the EU may require MERCOSUR Member States to ratify ILO Conventions such as the 87 – which has not been ratified by Brazil yet – in order to guarantee a level playing field. Since the final text is currently being discussed, the impact of this agreement will largely depend upon the political will of both parties.

Highlights

  • In June 2019, the European Union and Mercosur reached a political agreement in order to sign a comprehensive free trade agreement (FTA), which aims to increase interregional trade and to further develop cooperation in noncommercial areas, such as food security and labor regulations

  • INTRODUction In June 2019, the European Union (EU) and MERCOSUR reached a political agreement ( “Agreement”) in order to sign a comprehensive free trade agreement (FTA)[1]. This dates back to 1992 when MERCOSUR and the European Communities signed an Interregional Framework Cooperation Agreement that aimed at strengthening trade between both regions in order to guarantee the competitive integration of MERCOSUR into the world economy and the consolidation of the EU presence in the region[2]

  • The FTA between the EU and MERCOSUR will have important legal consequences and will undoubtedly, if ratified, entail legal reforms. As it has been underlined, the EU regulatory power goes beyond the internal legal consequences that affect the EU Member States

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Summary

Introduction

Abstract: In June 2019, the European Union and Mercosur reached a political agreement in order to sign a comprehensive free trade agreement (FTA), which aims to increase interregional trade and to further develop cooperation in noncommercial areas, such as food security and labor regulations. Upon the ratification of this agreement, MERCOSUR and its Member States will certainly need to reform their legal orders so as to align themselves with the food security international standards such as the International Union for the Protection of New Plant Varieties.

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