00:00The Mercosur Bloc is a major exporter of beef, however, under the new trade deal between
00:06the EU and four Mercosur countries, Argentina, Brazil, Paraguay and Uruguay, there will be
00:11a set quota on how much beef can enter the EU.
00:15That's set at an additional 99,000 tons a year.
00:18Despite this, a cattle farmer in Paraguay, one part of the Mercosur Bloc, praises the
00:23agreement.
00:26An agreement that will benefit both Mercosur and the European Union, because of course
00:32Mercosur won't be the only Bloc selling meat.
00:34The European Union will sell a range of products to Mercosur duty free.
00:40An analysis from the European Commission shows that the oil industry will benefit the most
00:45from the trade deal, followed by the mechanical engineering sector and the chemicals industry.
00:49The increase in these sectors is projected to reach 48.7 billion euros by 2040.
00:56The volumes of fish and agricultural products coming in from the Mercosur countries are expected
01:01to grow.
01:02The analysis also predicts substantial growth in chemical products leaving the EU.
01:07Overall, exports from the Mercosur countries are projected to increase by almost 9 billion
01:12euros by 2040.
01:15German companies are largely optimistic about this trade agreement.
01:20Food trade agreements are very important for European industry partners.
01:27On the one hand side, it grows the market in which they can operate.
01:33It also increases the competition pressure, which also is good for companies to provide better
01:40solutions.
01:41At the same time, it also helps to diversify the supply chains.
01:46Across the Atlantic Ocean, in northwestern Argentina, truck manufacturer Scania produces hundreds
01:53of parts here to be exported to Sweden, Brazil and the USA.
01:58With a new trade agreement, they are optimistic.
02:06Local suppliers are already prepared to meet safety and emissions regulations.
02:14That's something new competitors would have to invest in.
02:19Everything is a potential risk, but it's also an opportunity.
02:27Tariff rates between the European Union and Mercosur will continue to drop over the next
02:33few years.
02:34Mercosur producers are particularly concerned about competition in the dairy sector.
02:41Tariffs on European cheese, which are at 28% now, are being phased out.
02:48Veterinarian Marcello Lisiero raises goats near Buenos Aires.
02:52He makes French-style cheese, blending goat's milk with cow's milk.
02:57For us, this means uncertainty and, in a way, fear, knowing that the tariff on imported products
03:06will eventually drop to zero.
03:09We have now 10 years to prepare for that.
03:15Lisiero hopes Argentina will lower domestic taxes so that his products can compete with
03:21cheese from France or Germany.
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