Brussels, 02/05/2011 (Agence Europe) - Although the European agricultural sector would suffer from a trade agreement with Mercosur, industry would gain from it, a Commission study points out.
A study has been conducted by the European Commission on the overall impact that such a trade pact would have within the framework of an association agreement with the Mercosur bloc (Argentina, Brazil, Paraguay and Uruguay, with Venezuela in the process of accession). The results of the study, revealed on 29 April, conclude that such an agreement would bring about a clear rise in exports from the EU industrial sector, and also in the services sector. Gains in the industry and services sectors largely exceed any losses that would be incurred in agriculture, the Commission states. Its impact assessment study on the agricultural chapter concludes there would be adverse consequences for European agriculture, especially in specific sectors and in a number of specific regions. The overall trade impact assessment concludes that, all sectors taken together, EU exports would rise of between 67.6% and 105.4% depending on the level of ambition of the agreement envisaged. The biggest rise would concern exports of goods towards Mercosur, which would increase between 79.1% and 117.6% depending on the scenario, but the services sector would also see exports rise by between 19.7% and 52.5%. The expected rise in GDP for the EU could reach between €14.7 billion to €21.4 billion at least, bearing in mind losses for agriculture, the European Commission study points out. European and South American negotiators are meeting in Asunción (Paraguay) from 2 to 6 May. (E.H./transl.jl)