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Treaty with the EU could be a challenge for relations between Brazil and Argentina

by Ace Damon

Americas

08:03 02.02.2020 (updated 08:41 02.02.2020) Short URL

While Brazil seeks to close a free trade agreement between Mercosur and the EU, it is seen as negative by Argentine industrial sectors and would be a challenge for relations between Brazil and Argentina.

If, on the one hand, the free trade agreement between Mercosur and the European Union could be beneficial for Brazilian exports, the fear of loss of competitiveness in several Argentine industrial sectors has raised questions about the real advantages of the agreement for the neighboring country.

In addition to the possible loss of competitiveness in the Argentine market, industrial producers in this country also fear that the agreement may affect the link with Brazil, Argentina's main trading partner and destination of 70% of industrial exports, as published the Infobae portal.

"Bolsonaro is betting on free trade agreements with other countries and leaving Mercosur aside – at least in his words, since he has not yet materialized it. In this sense, the question is how to develop the bilateral relationship in a context in which Brazil seems to look the other way, "political analyst Juan Negri, a professor at the Torcuato Di Tella University, Argentina, told the media.

More advantages for Brazil?

The expert suggested that the agreement could be more advantageous for Brazil than for Argentina. The reason for this would be the greater Brazilian industrial capacity compared to the neighboring country.

However, Negri also took into account the difficulties that products from Mercosur may have in reaching the European market.

"The EU is very demanding with the type of regulations that it imposes on products that enter" and has "standards, such as environmental ones, which are higher and that many companies and relevant players in Mercosur do not comply", he said.

(tagsToTranslate) relations between Brazil and Argentina (t) free trade agreement between Mercosur and the European Union

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