Former Agriculture Secretary Marcelo Regúnaga commented that, “an agreement of this magnitude with one of the major global players is very important to try to have common rules.”
Former Secretary of Agriculture Marcelo Regúnaga analyzed for Canal E the progress of the agreement between Mercosur and the European Union, which is once again taking center stage on the international economic and political agenda.
“I believe this is very important news on a global level,” said Marcelo Regúnaga, and warned that the current international context is marked by “a very serious problem with how all geopolitics is functioning in the world” and by “a series of threats of destruction of the entire multilateral system and the lack of rules.”
The benefits of reaching an agreement with Europe
From that perspective, he argued that for Argentina and Mercosur, the agreement with Europe is key because "an agreement of this magnitude with one of the major global players is very important to try to have common rules that are very important in trade or investment matters."
Regúnaga emphasized that the agreement could also serve as a catalyst for streamlining the regional bloc's internal operations. "Mercosur is a region with many internal regulatory issues," he noted. He added, "An agreement with the European Union will challenge us and provide a better opportunity to improve Mercosur's overall functioning."
In that context, he highlighted the need for a more active international integration: "Countries that have been dynamic have generated a number of negotiations of this type, of free trade agreements, between different regions."
Argentina would have a disadvantage when it comes to trade
One of the central points was the tariff disadvantage that Argentina faces compared to other competitors. “To access markets, we have a much higher cost than Australia or New Zealand or many of our competitors, because they have signed free trade agreements and we haven't,” the interviewee explained.
Beyond trade, he focused on investment and productive modernization. “Argentina is a country that is very technologically behind,” he stated. In this regard, he maintained that the agreement opens opportunities for cooperation: “Cooperation with countries of the magnitude of Italy, France, Germany, and others, to modernize our agro-industrial sector and also our manufacturing sector, I believe is a very good opportunity.”
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