A new Environmental Impact Assessment (AIS) is being developed to assess the economic, social, environmental and human rights impacts of a trade agreement between the EU and Mercosur. An independent contractor conducts the study. Negotiations began on 28 June 1999. After the suspension of the talks, negotiations resumed in 2010. The long-standing negotiations gave new impetus in 2016, when the EU and Mercosur each submitted new offers to reduce tariffs. On 28 June 2019, the European Union and Mercosur reached a political agreement on an ambitious, balanced and comprehensive trade agreement. The new trade framework, part of a broader association agreement between the two regions, will strengthen a strategic political and economic partnership. The agreement will also pave the way for supply chains of products manufactured to contribute to the preservation of the environment, such as natural forest paran nuts.B. 3 Trade negotiations between Mercosur and the EU began with the Inter-Regional Cooperation Framework Agreement signed in December 1995, which aimed to strengthen economic cooperation, strengthen political dialogue and prepare for the bilateral liberalisation process. At the Rio de Janeiro summit in June 1999, the two sides agreed to begin negotiations for the creation of a free trade agreement through a gradual and reciprocal process.
Although both blocs recognise the importance of creating a free trade agreement, one of the most difficult challenges lies in the agricultural negotiations, where Mercosur is clearly competitive, while the EU maintains a protectionist CAP (common agricultural policy). This issue is increasingly dominating the agenda of trade negotiations and the opportunities for deepening and clearing trade relations between the two blocs will depend to a large extent on progress in this area. An important aspect of Mercosur`s relationship with the EU is that, given the growing trade dominance in the United States and the ongoing hemispheric negotiations, Mercosur sees the EU as a counterweight to the US, particularly under the free trade agreement. For the EU, Mercosur is an important supraregional trading partner; It absorbs about 50% of its exports to Latin America and accounts for half of Latin America`s total exports to the EU market. Mercosur is a traditional stronghold in America and is now an increasingly important partner in blocking American domination and restoring its lost share in Latin America by strengthening trade relations and encouraging trade opportunities. Given that the EU and the United States are competitors in the South American market, this is a very important parallel program of the free trade agreement. 51The growth in industrial production is largely covered by the efficiency gains of trade-related externalities and economies of scale. The results show that after liberalization, production is readable with caution in most sectors. Substantial adjustment in output leads to a strong adjustment of factor markets, as national resources must be redeployed freely and free of charge from manufacturing or the wage industry to the primary sectors, without taking into account the fact that labour redistribution entails considerable social and political costs.