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The free trade agreement between the European Union and the Mercosur countries - Brazil, Argentina, Uruguay and Paraguay - is expected to be signed at the end of this week.
The EU has concluded agreements with the 4 countries of Latin America for duty-free transit - export and import of goods. Apart from the benefits, however, some countries, including France, also see negatives from it.
Opposing positions on the subject were expressed by former Minister of Agriculture and adviser to the President Yavor Gechev and financial analyst Preslav Raykov on the air of "Hello, Bulgaria".
Gechev emphasized that Mercosur is a trade association of the strongest economies in Latin America, including Brazil, Argentina, Uruguay and Paraguay. According to him, negotiations on this agreement have been going on for nearly 25 years, precisely because such contracts bring both benefits and serious damage to individual sectors.
The EU has announced when it will sign the Mercosur trade agreement
Gechev drew attention to the fact that the agreement provides for the duty-free import into the EU of up to 99,000 tons of annual beef, 180,000 tons of poultry and 25,000 tons of pork. According to him, this will distort the market, as European farmers are subject to considerably stricter environmental requirements. In his words, the European Union looks at the agreement primarily from a consumer point of view, but simultaneously occurring "ties the hands" of agricultural producers. He added that in the last 4-5 years, the EU has recorded the largest number of bankruptcies of farmers in its history.
Among the risks, Gechev pointed out the planned import of about 200,000 tons of ethanol per year, stressing that Bulgaria is a serious alcohol producer and such a measure would have a negative effect on the sector.
The financial analyst Preslav Raykov took the opposite position, according to whom the agreement is extremely useful for both the Bulgarian and the European economy.He emphasized that the EU is purposefully opening its markets to the industries of Latin america and to the so-called resource economies. "Bulgarian industry will have the possibility to export machinery, equipment and services to markets where industrial production is still developing", said Raykov. According to him, the automotive industry will also be among the sectors that will benefit from the agreement, and the benefits will be distributed throughout Europe.
Raykov expressed the opinion that Mercosur does not pose a threat to European agriculture, noting the fact that Ukraine is already part of the European agricultural market. According to him, the main winners will be the industrial industry, the processing sector and the pharmaceutical industry.
Watch the whole conversation in the video.
Editor: Darina Metodievadate:2026-01-12 15:22:00
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