The associations highlight that the agreement will help diversify the value chains both for both imports and exports as well as open opportunities to maintain a strong industrial structure in the EU.

The letter reads: “The agreement offers Europe a unique and timely chance to seize its first-mover advantage to partner up with one of the world’s largest economies. A deal helps to significantly reduce both high tariff and non-tariff barriers that negatively affect European companies’ chances to compete on Mercosur’s relatively closed market with over 270 million consumers.”

Mercosur is a South American trade bloc consisting of Argentina, Bolivia (as of 2023), Brazil, Paraguay and Uruguay.

Read the full letter here.