Germany’s economic associations welcome the majority of the free trade agreement is the EU and the South American Mercosur States. However, there are also critical voices.
Beef from Uruguay
The President of the German chamber of industry and Commerce day (DIHK), Eric Schweitzer, spoke of a “very positive message in an otherwise gloomy global economic environment”. Still euphoric, the President of the Federal Association of wholesale, foreign trade and services (BGA), Holger Bing man, commented: “We are overjoyed that this historic agreement comes after the extremely long and tough negotiations to a successful conclusion.”The largest free trade zone in the world, with more than 770 million people would.
The President of the German chamber of Commerce and industry day, Eric Schweitzer
Also, German Chancellor Angela Merkel celebrated, together with other heads of state and government from the EU and South America the agreement. During a brief summit on the sidelines of the G20 summit praised EU Commission chief Jean-Claude Juncker, the conclusion of the negotiations “as a real historical Moment”.
Provide German farmers and Green
Criticism comes from the German farmers Association (DBV). This fears that the trade agreement between the EU and the South American Mercosur countries is threatening the future of many German family businesses. Unequal requirements for environmental and climate protection, use of Antibiotics and pesticides, as well as a lack of hedging in the European market would lead to a dramatic distortion of competition – in particular, in the case of beef, poultry and sugar, warned the Association. “It is unacceptable that the EU Commission signed this totally unbalanced agreement. This trade agreement is a double standard pure,” said DBV President Joachim Rukwied. This Rukwied overlooks the fact seems to be that in Uruguay, one of the largest beef producers, by law in the Livestock sector, the use of hormones and antibiotics, as well as all kinds of anti-microbial agents for performance promotion (AML) is prohibited, such as the “Neue Zürcher Zeitung” writes.
Rukwied invited the heads of state and government and the European Parliament to protect European Standards for agriculture and food. “Agriculture should not be for the benefit of the automotive industry to be sacrificed,” said Rukwied.
Afraid of losing the market position of German farmers: Joachim Rukwied
The Green values of the agreement as a “disastrous decision for climate protection and human rights”. “This agreement should be brought to a conclusion”, called on the trade policy spokesperson of the Greens group in the Bundestag, Katharina Dröge. The EU’s trade “better market access for cars against the huge imports of beef, poultry, sugar and other agricultural goods”. This means new grazing and agricultural land and will have “further deforestation in the Amazon area”.
Boost for South America
In South America, one is relieved that the agreement is concluded. Brazil’s President Jair Bolsonaro said it was a historic breakthrough. His country expected in the next 15 years, a growing economy and rising investment. EU trade Commissioner Cecilia Malmström evaluated the agreement as “a loud and clear message” in support of free trade.
Similarly, Argentina’s President Mauricio Macri said. “This is the most important agreement we have signed,” he said. It will provide for additional growth and new opportunities for the people in the countries involved.
Argentina’s President Mauricio Macri hopes for an economic recovery
For Mercosur, the EU is the first major Partner to the Federal government enters into a commercial contract. The extent of the customs relief to the scale, it could be the trade agreement is the most lucrative for the EU. The European Union can expect the elimination of customs duties in the amount of four billion euros.
Most recently, the EU had expressed imports, concerns the case of Meat, while the South American countries were reluctant Opening up of specific industrial sectors such as the automotive industry. Brazil’s President said his country would now be able to certain rates of meat, sugar and Ethanol export to the EU. Several agricultural products would now be subject to not more duties.
The agreement still has to take some hurdles. France and other countries fear a strong increase in beef imports. Environmental groups are criticizing the agreement, the felling of forests could be accelerated. All members of the EU and the European Parliament must agree to the contract.
Characters against Trump
The joint appearance at the G20 summit is also regarded as the characters of U.S. President Donald Trump. This had stomps plans for the TRANS-Atlantic free trade agreement TTIP, and the US involvement in the Pacific trade agreement TPP terminated. Both chambers of industry and Commerce, as well as BGA see the conclusion of the negotiations as a sign against the current trade conflicts. “The resulting largest free trade zone in the world is more than just an exclamation mark against the world’s rampant protectionism ends,” said BGA President of the Bing man. Similar DIHK-chief Schweitzer said. He expects improved market access for machine builders, car manufacturers and the food industry.
Holger Bing man, President of the Federal Association of wholesale, foreign trade and services
The political negotiations between the EU and the Mercosur countries of Argentina, Brazil, Paraguay and Uruguay had been completed on Friday evening. They ran, with some interruptions, since the year 2000. On the agreement customs duties and other trade barriers should be dismantled in order to strengthen the exchange of goods and companies cost-savings in the billions to bring.
The port of Montevideo in Uruguay
The Confederation of States of Mercosur, with a population of more than 260 million people, one of the major economic areas of the world. The EU even comes to more than 512 million inhabitants.
cgn/kle (afp, dpa, rtr, nzz.ch)