The European Automobile Manufacturers’ Association (ACEA) has welcomed the conclusion of the trade agreement between the European Union (EU) and the Mercosur bloc, urging prompt ratification by the Council and the European Parliament. The agreement, poised to create one of the world’s largest free trade areas, promises economic growth for both regions while advancing environmental and social commitments.
Boost to the Automotive Industry
Sigrid de Vries, Director General of ACEA, emphasised the agreement’s potential to enhance the global competitiveness of European automakers. “The conclusion of this deal will contribute to strengthening the global competitiveness of European automobile manufacturers by eliminating high tariffs and addressing technical barriers to trade in their exports to the Mercosur market,” she stated.
The agreement is expected to reduce trade barriers, allowing European manufacturers better access to Mercosur markets, including Argentina, Brazil, Paraguay, and Uruguay. This comes as the automotive industry faces mounting challenges in transitioning toward decarbonisation.
A Global Trade Signal
Amid rising global protectionism and geopolitical tensions, the agreement serves as a strong endorsement of free, open, and rules-based trade. ACEA highlighted the importance of this deal at a time when fostering international trade partnerships is increasingly vital for economic resilience and growth.
Call for Action
The automotive sector views the EU-Mercosur agreement as a critical step forward. ACEA has called on EU institutions to expedite its ratification, ensuring that the benefits of reduced tariffs and improved trade conditions can materialise swiftly.
This agreement represents a strategic opportunity to bolster the European automotive industry’s position in global markets while supporting sustainability goals in line with international standards.
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