Efta Mercosur Agreement

Supporters of a trade agreement with Mercosur, such as the Swissmem Mechanical and Mechanical Engineering Companies Association and the Schweizerische Wirtschaftsverband economiesuisse, welcomed the recovery for Swiss exporters, but the Swiss agricultural sector remains concerned. Details of the agreement are available in www.efta.int/sites/default/files/documents/legal-texts/free-trade-relations/mercosur/2019-08-24-EFTA-Mercosur-Chapter-Description-of-FTA.pdf. The abolition of tariffs would begin with the entry into force of the free trade agreement. Unlike the FREE Trade Agreement ENTRE THE MERCOSUR and the European Union (EU), the reduction of import duties would not require exemptions. For more information on MERCOSUR and the EU`s FREI trade agreement, see EY Global Tax Alert, Mercosur-EU new free trade agreement would eliminate import duties for more than 90% of traded products, dated 13 August 2019. This content was published on 8 November 2019 and warned Switzerland against ratifying the free trade agreement with the Mercosur countries. Therefore, in the worst case scenario, the increase in deforestation resulting from the agreement in the Mercosur countries could be between 0.02% and 0.1%. While an agreement aims to facilitate the export of the Swiss machinery and services industry, South American countries could in return increase their meat sales in Switzerland. Swiss farmers fear price pressure and their main union said on Saturday that concessions in the agricultural sector sometimes went too far. For example, the Swiss had made more concessions in the beef sector than their EU counterparts. The union will review the agreement in detail before saying whether it will support it or not.

For more details on the EFTA-Mercosur Free Trade Agreement, you will find a chapter-by-chapter on the free trade agreement. On 19 January 2017, MERCOSUR and EFTA signed a joint declaration announcing the conclusion of their exploratory dialogue on a possible comprehensive free trade agreement. MERCOSUR and EFTA met to prepare for the negotiations on 17 February 2017 in Brussels, Belgium. The first round of negotiations took place on 19 June 2017 in Buenos Aires, Argentina. MERCOSUR and EFTA met in Geneva, Switzerland, for the second round of free trade negotiations, from 29 August to 1 September 2017. “The agreement ensures that Swiss exporters will not be disadvantaged in their relations with their European Union competitors who concluded a free trade agreement with Mercosur countries this summer,” he added. On 24 August 2019, the European Free Trade Association (EFTA) announced that members of the European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland) and Mercosur (Argentina, Brazil, Paraguay and Uruguay) would meet in Buenos Aires from 20 to 23 August to continue discussions on a large-scale free trade agreement. This tenth round allowed the parties to conclude negotiations in all areas. EfTA secretariat communication: The agreement to be ratified was announced Friday night on Twitter by Brazilian President Jair Bolsonaro. Switzerland, a member of EFTA, confirmed the measure that evening, but details of the agreement were not published until Saturday afternoon.

In order to prepare for the entry into force of the free trade agreement, multinationals should decide whether their products are included in the provisions of the free trade agreement and whether the company is complying with the requirements of the agreement. The EFTA and Mercosur delegations met in Buenos Aires from 20 to 23 August to continue discussions on a large-scale free trade agreement. This tenth round allowed the parties to conclude negotiations in all areas. Ratification is expected by 2021, after a legal review and transit through Parliament.