Exclusive: Caobisco confectionery body joins trade groups welcoming EU-Mercosur deal

Europe’s key Caobisco confectionery association has joined CIUS, sugar users group, and a host of wider industry trade bodies in backing signing of the landmark EU-Mercosur Trade Agreement, reports Neill Barston.

The major sector groups recognised the scale and importance of the deal, which would see an overall increase of 39% in export trade put at €77 billion between EU nations heading to the South American bloc, concluding an epic 25 years of negotiations.

Notably, as Confectionery Production reported last month, the issue formed a key element of discussions at the Caobisco annual meeting last month, during which optimism was expressed by both EU representatives, and from a Brazilian delegation, that a deal could be struck soon.

Moreover, as the meeting discussed, there could be some significant benefits for the import and export of chocolate confectionery, cocoa and sugar as part of the deal, which was signed in Paraguay, and requires final ratification by the EU Parliament to enter force.

While there has been significant backing for the historic trade deal, tensions have arisen in agricultural circles, including within French, Irish and Polish farming communities, which were uncertain over the potential impact of greater levels of certain products including beef from South America as a result of the deal. 

However, it appears an overall majority consensus has emerged on the value of the deal, which will be concluded between the EU and the South American bloc including Brazil, Argentina, Uruguay, Paraguay, though its latest member Bolivia will not be included as it had not been involved in negotiations. Notably, Venezuela has been suspended since 2016 regarding a failure to meet basic standards in guaranteeing human rights and trade.

In the wake of the signing of the agreement in Paraguay on Saturday, Cabosico and CIUS put their backing towards the following joint statement.

“Today marks a historic milestone with the signing of the EU-Mercosur Trade Agreement, creating the biggest trading block in the world. European business – represented by more than 28 associations across a wide range of sectors – warmly welcomes this signature. It sends a strong and timely signal that the EU remains open and is committed to rules-based global trade. In a time of global uncertainty, this agreement is a key growth booster.

“By opening access to over 270 million consumers via the elimination of trade barriers and the removal of tariffs on over 90% of EU exports, the agreement provides the thrust European companies need to export, invest, and grow, as well as to diversify their supply chains, sourcing essential products and raw materials from Mercosur. By 2040, according to DG Trade’s calculations, the agreement is expected to add 77.6 billion euros to the EU GDP, resulting in a 39% increase in EU exports to Mercosur.

“With the agreement now signed, the ball is firmly in the court of the European Parliament in ensuring rapid ratification. We therefore call on Members of the European Parliament to give their consent and allow Europe’s engine of economic growth and prosperity to be switched on and move ahead decisively. After over 25 years of negotiations, we are finally in sight of the finish line. We cannot afford to wait any longer.”

The agreement needs final ratification sign-off from the EU Parliament before it can be finally be put into action, with the landmark deal anticipated to finally be put into action from the end of this year.