A comprehensive monthly analysis from an economic guild has shed new light on the significant implications of the EU-Mercosur association agreement, formally signed in Montevideo on January 17th. The report underscores the European Union’s pivotal role as a cornerstone for South American export growth and foreign investment.
According to the study, which draws on official projections, the implementation of the treaty is anticipated to catalyze a substantial upswing in Mercosur nations’ exports, with an estimated increase nearing 4%. Furthermore, the accord is forecast to generate a 0.5% rise in employment, providing a tangible economic stimulus.
Beyond these macroeconomic gains, exporters are anticipating a robust bilateral enhancement in the trade of both goods and services, coupled with a reciprocal surge in cross-continental investments. The agreement is also projected to fortify the competitiveness and security of international supply chains, addressing a key vulnerability exposed in recent years. A parallel strategic benefit involves the increased competitiveness and critical diversification of energy sources and essential raw materials, reducing dependency on single suppliers.
The guild’s analysis extends into environmental governance, heralding the pact as a catalyst for transformative changes in the collective fight against climate change. The framework is noted for incorporating stringent measures aimed at curbing deforestation and actively promoting sustainable development practices across the member economies.