The Federation of German Industry (BDI) yesterday expressed concern about potential repercussions for the European Union’s (EU) trade policy, if the free trade agreement with Mercosur does not succeed.
BDI’s executive board member, Wolfgang Niedermark, highlighted the importance of considering Mercosur states’ needs to reach a resolution within the year.
He urged for the EU to acknowledge Latin America and the Caribbean region’s growing geopolitical role and adapt to potential compromises in the supplementary contract for the Mercosur agreement.
The first EU summit with Latin American and Caribbean nations in eight years was marked as a key step in reviving relations.
Niedermark underlined the region’s vital role in the EU’s diversification strategy, its contribution to renewable energies and raw materials, and its position as a significant market and investment hub for European firms.
Niedermark advocated for the EU to intensify its efforts and present beneficial propositions to maintain competitiveness.
He emphasized the need to implement the 45 billion euro global gateway program for Latin America and the Caribbean as a credible plan for necessary infrastructure development.
For the full picture, see our Mercosur EU Trade Deal: Complete Guide.