Nicosia: The European Union is seeking to fast-track the approval of its trade agreement with Mercosur, with EU Trade Commissioner Maros Sefcovic warning that delays are costing the bloc hundreds of billions of euros in lost output and export opportunities. 'We lost almost 300 billion euros for not having a Mercosur agreement in place,' Sefcovic told reporters in a press conference after the Informal Meeting of EU Trade Ministers in Nicosia.
According to Cyprus News Agency, Sefcovic said the figure refers to 2021 GDP impact and is accompanied by 'more than 200 billion in export opportunities' foregone. Sefcovic argued that once complex negotiations are concluded, the EU cannot afford to wait years before agreements enter into force. He proposed shortening the approval process to roughly one year after the conclusion of negotiations. The Commissioner noted that seven or eight ministers supported the accelerated approach, with no opposition voiced.
The agreement has evolved significantly, with greater emphasis on access to critical minerals and clean technologies. Sefcovic highlighted the strategic dimension, noting that Europe had lost market share in the Mercosur region while competitors, particularly China, strengthened their position. On China, Sefcovic described the EU's strategy as "rebalancing," citing a significant trade deficit with China. He stressed the need for a balanced relationship, noting rising imports from China and declining European exports.
Sefcovic also discussed WTO reform, emphasizing the need for a deep, credible reform agenda. He argued that the global trading landscape has changed, with some WTO members expanding their trade share while keeping markets relatively closed. For the EU-UAE talks, Sefcovic acknowledged slower than hoped progress in free trade agreement negotiations. He noted strong investment interest from the UAE and the Gulf Cooperation Council region, including planned outreach to Saudi Arabia.
Cyprus Trade Minister Michalis Damianos mentioned ongoing discussions with the UAE on energy investments but noted that the Great Sea Interconnector project is not currently at the top of the list. On bilateral trade, Sefcovic highlighted the EU's efforts to reinforce rules-based trade, with a focus on recently concluded deals with India and Indonesia. He stressed the importance of ratification and exploring avenues to open new market access.
Cyprus Minister of Trade Michalis Damianos emphasized the need for an open, forward-looking trade agenda amid global uncertainty. He noted the importance of the WTO framework and the need for reform to address today's realities. On EU-China trade relations, he stressed the aim to manage the relationship in a balanced, constructive way. Ministers also reviewed progress in the EU's ongoing bilateral trade negotiations and held discussions with the Chair of the European Parliament's International Trade Committee.