The European Automobile Manufacturers’ Association emphasizes the need to ratify EU-Mercosur and EU-Mexico free-trade agreements swiftly to boost the European automotive industry’s global competitiveness. The EU-Mercosur deal could increase EU exports by up to €49bn ($57bn) and support over 440,000 jobs.

The European Commission has submitted proposals to finalize the EU-Mercosur and EU-Mexico agreements, aiming to create the world’s largest free trade zone with over 700 million consumers. The automotive industry body believes these agreements will strengthen Europe’s automotive industry amid global competition and supply chain challenges.

The EU-Mercosur Partnership Agreement is expected to remove tariffs of up to 35% on EU-made vehicles, potentially tripling automotive goods exports by 2040. The deal will also diversify supply chains for critical raw materials like lithium, graphite, and manganese, crucial for the green transition.

The ACEA urges EU policymakers to expedite the ratification of the EU-Mercosur and EU-Mexico agreements, emphasizing their strategic importance for the automotive industry. Director General Sigrid de Vries stresses the need for an open and rules-based trade system amidst intense competitive pressures and regulatory complexities.

Read more at Yahoo Finance: EU-Mercosur and Mexico trade deals crucial for auto industry: ACEA