The agreement on trade reached last June between the European Union and Mercosur states - Argentina, Brazil Paraguay and Uruguay – will unlock new or increased business opportunities for temperature-controlled third-party logistics in Europe both in terms of export and import.
The objective of this new trade deal that will impact logistics operators is, among others, to remove export barriers, to encourage companies to act responsibly, to uphold high food safety standards and to protect quality labelled EU food and drink products. Cutting existing Mercosur high tariffs (ranging from 20 to 30%) should boost EU exports products – chocolates and confectionery, wines, spirits, soft drinks. The agreement will also provide duty-free access subject to quotas for EU dairy products (currently 28% tariff), notably for cheeses. European pharmaceutical and other industrial products will also benefit from tariff removal. Transport providers seeking opportunities in Mercosur will see border checks simplified, excessive bureaucracy cut and the use of export taxes by Mercosur countries limited. A new online platform will provide businesses with easy access to all relevant information.
In terms of import, European logistics providers will be able to demonstrate professionalism and high value-added services as EU food safety standards will remain unchanged and all imports will have to comply with the EU's rigorous standards, as is the case today.
Read the official press release for more information on the EU-Mercosur trade agreement.