Brazilian Vice President Geraldo Alckmin announced a significant advancement in international trade by Mercosur, a major South American trade bloc.
This bloc includes Brazil, Argentina, Paraguay, and Uruguay. They have all agreed on a new set of trade rules, known as the Rules of Origin agreement.
This agreement is a big deal. It will make Mercosur more competitive in the world market.
Alckmin, who also works as the Minister of Development, Industry, Commerce, and Services, explained this during a meeting.
This meeting, the XI Mercosur Business Forum, took place in Brasilia. He pointed out that this new agreement is very important.
It will make doing business more predictable. It will also help Mercosur countries to compete better globally.
By following the best international practices, the bloc will improve a lot.
The agreement was approved in July. This happened during a summit in Argentina. The agreement makes some rules simpler.
It also makes checking where products come from easier. One key change is about how much of a product can be made from parts from outside Mercosur.
Before, only a small part could come from outside. Now, it’s a bit more. This change is especially for products made in Brazil.
A product must have mostly local parts to be seen as local. Specifically, at least 55% of it must come from within Mercosur.
New Rules of Origin
This new rule is for almost all products. For most industrial products, it applies completely. For most farm products, it applies to about 80%. For the rest, the old rule still applies.
Alckmin also talked about how different countries in Mercosur have different rules. For example, Argentina follows the same rules as Brazil.
But Paraguay and Uruguay are a bit different. They allow more parts from outside in their products.
He also praised another part of the agreement. This part is about how governments in Mercosur buy things.
He believes this will help the bloc grow in a good way. It will also make public services better in these countries.
Alckmin ended his talk with a big point. He said that this is a chance for Mercosur. They can now focus on making things in a way that is good for the planet.
They can also work on using energy better and helping people more. This agreement is not just about trade. It’s also about making a better future for everyone in Mercosur.