Brazilian vehicle exports to Argentina are expected to plunge this year, and the industry could face threats from rising imports following a free trade agreement between the European Union and Mercosur, a major industry body said.
Brazilian President Jair Bolsonaro has rebutted European criticism over his commitment to the environment, saying he'd flown over Europe twice and hadn't seen “even a square kilometre of forest.”
Brazil’s Foreign Minister Ernesto Araujo said on Wednesday that he expects two new trade deals to be signed between the trade bloc Mercosur and other regions in the second half of 2019, hailing a new era of openness in Brazil.
Brazil's Foreign Trade Secretary Marcos Troyjo says that Jair Bolsonaro's government was decisive in pulling off the free trade agreement between Mercosur and the European Union.
Deforestation in Brazil's portion of the Amazon rainforest soared more than 88% in June compared with the same month a year ago, the second consecutive month of rising forest destruction under new President Jair Bolsonaro, who has called for the development of the region.
Fisheries exports from Mercosur member countries which now face tariffs ranging from 8% to 15% in the European Union will see them gradually disappear during a seven-year period, according to the terms of the wide-ranging strategic trade and cooperation agreement signed this week between the two blocks.
“Now I only have to recover the Malvinas Islands” said Argentine foreign minister Jorge Faurie, following the trade and association agreement reached on Friday in Brussels between Mercosur and the European Union.
The European Union and Mercosur reached on Friday a political agreement for an ambitious, balanced and comprehensive trade agreement. The EU is the first major partner to strike a trade pact with Mercosur, a bloc comprising Argentina, Brazil Paraguay and Uruguay.
Brazil and Argentina have started discussing a reduction in the common external tariff (TEC) of the Mercosur trade block, sources in both governments revealed on Wednesday, as their market-friendly presidents look to boost economic growth.
The European Union and Mercosur will likely close a trade agreement in the near future, Brazil’s Foreign Trade Secretary Lucas Ferraz said in an interview with Bloomberg. “We’ve never been so close,” Ferraz said adding, “we’ve advanced more in four months than in 20 years”.