Impact of EU South America Trade Agreement

As the European Union and South America Agreement will take effect in the near future and the flow of goods starts across the Atlantic, it is clear that two blocks will immensely benefit from such a deal.

Brazil, Argentina, Uruguay and Paraguay are expected to export beef, Dairy Products and agricultural products. The European Union manufacturing power houses such as Germany are ecstatic at the prospect of exporting their heavy machinery, electronics and other commodities to South America. Exporting to South America , will be a major business for many companies in the European Union. Brazil and Argentina are the number 1 and Number 3 economies in South America. This will result in a huge rise in trade between the 2 blocks.

The Trade deal will cut duties on imports to the EU by over 50 billion Dollars. Tariffs will drop from 45% to 7.5% in essence promoting cheaper products from South America.

Impact of Trade Agreement on Other South American Countries.

Even though the agreement was signed by only four countries in South America, the other countries will directly benefit from the deal.

Trade agreements are in place between South American Countries which facilitate the flow of goods across borders. This means that whatever products are received in Brazil, for example, will end up in Neighboring Countries. You can only imagine the demand for European products which are held in high regard over products made in China.

This agreement will also drive innovation and development of new products to meet the Demand in South America.

We must not forget the impact of this agreement on the shipping industry. 3Pl Companies in South America and their counterparts in Europe stand to grow their business by leaps and bounds. There will be an increase in Ocean shipping to Europe  and shipping to South America.



Export to South America

3Pl companies in Brazil

3Pl Companies in Argentina

Exporting to Europe

Shipping to Bolivia

Posted in 3PL Companies, Freight Forwarders, International Freight Forwarding, Shipping and tagged , .

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