It was a moment some thought would never come. In December, European Commission President Ursula von der Leyen and the presidents of the Mercosur countries announced that the European Union and Mercosur had reached a deal on a trade agreement that had been 25 years in the making. The deal — formally known as a partnership agreement, since it also encompasses political and other forms of collaboration — could usher in an epoch of closer relations between Mercosur countries, including Argentina, and the EU. 

The Herald spoke to Eran Nagan, Deputy Ambassador of the EU in Argentina, about the implications of the agreement and the EU’s role in the country more broadly.

The interview has been lightly edited for length and clarity.

How will the EU-Mercosur trade agreement affect Argentina?

I think it was great news for Europe and for the Mercosur countries, including Argentina, that we were able to finalize the negotiations, because it’s good for both sides of the Atlantic. It’s good from a geopolitical perspective: we’re connecting two blocs of democratic countries that share values, respect for human rights, respect for the rule of law. It’s good from an economic perspective, because it will be good for consumers. Prices will go down, both in Europe and in the Mercosur countries, once it’s ratified.

It’s good for the private sector — it will benefit and facilitate trade between the two regions — and it’s good in terms of attracting investment. It will be a guarantee of confidence of the global community in Argentina, and in that sense it will help attract more foreign investment. 

The third advantage is that it’s a clear message in support of free trade in a moment where that free trade is somewhat under pressure, with an incoming U.S. administration that looks quite differently at trade. Here we have a clear signal of two major blocks betting on the benefits of free trade, rather than economic nationalism.

The deal restricts the extent to which Argentina can impose export duties, something it has often done. Could that cause issues — and will the benefits outweigh those issues?

I think the association agreement between the EU and Mercosur offers a tremendous opportunity for Argentina. It has been welcomed by industrial organizations like the UIA and the CAC, the umbrella organizations representing much of Argentine industry, as well as the Sociedad Rural, so the agricultural sector.

It’s an opportunity for Argentine industry and agricultural producers to enlarge their........

© Buenos Aires Herald