Eu Trade Agreement With Argentina

With a portfolio of 365 billion euros, the EU is the largest foreign investor in Mercosur, while Mercosur`s investment stock in the EU stands at 52 billion euros in 2017. Although the relationship is very extensive, both exporters and potential investors face obstacles in Mercosur markets. With regard to the institution of anti-dumping duties, the appeal body confirmed that the Panel had concluded that the Union had acted in contradiction with Article 9.3 of the anti-dumping agreement and Article VI:2 of the GATT of 1994 by imposing anti-dumping duties exceeding the dumping margin that should have been established in accordance with Article 2 of the Anti-Dumping Agreement and Article VI:1 of the 1994 GATT. The appeal body agreed with the panel that the reference to the “dumping margin” in Article 9.3 of the anti-dumping agreement referred to a margin set under Article 2. The appeal body agreed that, in light of the particular circumstances of this dispute, Argentina had argued that the Union had acted in contradiction with Article 9.3 of the anti-dumping agreement, which the European Union did not refute. With regard to the determination of dumping by the EU authorities, Argentina first argued that the EU authorities had acted in contradiction with Article 2.2.1.1 of the anti-dumping agreement, so that Article 2.2 of the anti-dumping agreement and Article VI:1 (b) of the 1994 GATT were not calculated by not calculating biodiesel production costs on the basis of the producer/export registers examined. The EU authorities concluded that domestic soybean prices in Argentina were distorted by Argentina`s differences in export taxes on inputs (soybeans) and taxes on the finished product (biodiesel). As a result, in establishing the normal value of Argentine producers, the European Union authorities replaced the costs indicated in the records of Argentine soybean producers/exporters with the reference prices published by the Argentine Ministry of Agriculture. According to the EU authorities, these prices reflect the level of international prices and the price that would prevail in Argentina, but in terms of distortion. But Argentina has reportedly blocked this option, fearing that its products will be replaced by European products on the Brazilian market, one of the most important for Argentina. According to the Folha de S.Paulo newspaper, the proposal for Argentine President Cristina Kirchner would be “incompatible with the deeper integration of the bloc. In 2000, the parties began negotiations for an association agreement with three chapters: political dialogue, cooperation and trade.

Negotiations were suspended in 2004 due to fundamental differences in the trade chapter. Political relations continued, notably with the signing of an agreement on the extension of relations to three new areas, namely science and technology, infrastructure and renewable energy, at the EU-MERCOSUR SOMMET in Lima in 2008. The EU remains the main source of foreign direct investment in the region: more than 40%. Europe invests more in Latin America than together in China, India and Russia, and these investments continue to increase. Trade flows have doubled in the last ten years to reach EUR 202 billion. The network of agreements woven over the years has contributed greatly to this. The EU is Mercosur`s largest trading partner, accounting for 19.8% of Mercosur`s total trade with the world and amounting to EUR 109.895 billion in 2013. [4] Mercosur is an economic and political agreement between Argentina, Brazil, Paraguay and Uruguay. In the field of trade, Mercosur aims to promote the free movement of trade and the fluidity of trade in goods, people and currencies between its members.