Europe: Regional Business Trade Deal between EU and Mercosur to Benefit Chemicals Industry
With the new deal, duties for over 90 % of EU chemical exports will be eliminated. It will also provide duty-free access to 450,000 tonnes of ethanol for chemical use which will enable the European chemical industry to increase the use of renewables for the production of bio based chemicals.
Belgium – Cefic fully supports the conclusion of a trade agreement between the EU and Mercosur countries. The trade deal negotiated by the European Commission removes duties for over 90 % of EU chemicals exports, which currently face import duties of up to 18 %. Chemicals will also benefit from simplified rules of origin.
Additionally, the deal provides for duty-free access to 450,000 tonnes of ethanol for chemical use. This will help the European chemical industry to increase the use of renewables for the production of biobased chemicals and diversify its feedstock use.
Mercosur is an important trade partner for the EU chemical industry, with annual exports of chemicals worth €6,3bn. The trade deal will allow for steady growth of trade between the two regions and is a win-win situation. Cefic has called on the European Parliament and EU member states to approve the deal so that the EU industry can reap the benefits of liberalised trade.