For the IDB, plans are needed for the sectors concerned by the Mercosur-EU agreement

In an badysis of the agreement between Mercosur and the European Union, Inter-American Development Bank (IDB) considered that "a paradigm shift in companies in the region" should be encouraged and acknowledged that "Implement productive transformation programs to facilitate transition to the most affected sectors", in line with the promise made by some sectors of the government to put in place "adaptation" plans.

With regard to the access of European industrial products to the local market, the study of the Institute for the Integration of Latin America and the Caribbean (IDB-Intal) has warned that "This will encourage companies to compete with European companies in the region, both because of the potential impacts at the national level and because of the diversions of traffic".

For the multilateral financing agency, said, as the IMF, "it will be necessary to take into account the reforms to optimize the logistics of foreign trade, facilitate trade, improve promotion and, in addition to". help the affected sectors, "Generate appropriate incentives and regulatory frameworks stimulate competitive sectors, thereby reducing the productivity gap with the European economies. "

What are the details of the Mercosur-EU agreement?

The IDB believes that to take advantage of this agreement, Mercosur will have to improve its competitiveness. "This agreement offers Mercosur industrial and service centers an opportunity to follow a difficult but inescapable path towards global integration", add The message is consistent with what some industry leaders have acknowledged as the head of the UIA, Miguel Acevedo, who said that they would "go to the gym". "Focusing only on national or captive markets in the region is no longer an option," warns the IDB, which funds private sector participation programs in Mercosur and an action plan for integration with the Pacific Alliance, one of the objectives of the trade negotiation, according to the presidents of the countries of the Union during the last summit of Mercosur.

In its badysis of the Mercosur-EU agreement, IDB-Intal points out that the bloc's offensive interest was focused on agricultural exports. "Although quotas on certain products of interest to Mercosur do not seem generous, the immediate gains of access for other important products of the regional export basket can be substantial, "said the bank chaired by Luis Alberto Moreno.

For the government, the trade agreement with the United States is a "long-term" goal

"Mercosur's industrial sector also opens up opportunities, as 80% of its exports to the European bloc will have immediate access to zero tariffs and 100% within a maximum of 10 years," they said. There are "market niches" in which Mercosur can be competitive, such as leather, designer clothing or biotechnology.

In the services sector, the multilateral bank notes that "the EU is the largest importer of services in the world and imports only $ 12.4 billion in Mercosur services, out of a total of 800 billion US dollars that counts in the world.

CP