Impact assessment of the EU-Mercosur Association Agreement on the US economy

On 2019, the European Union (EU) became the first major partner to sign a trade agreement with Mercosur (Argentina, Brazil, Paraguay, and Uruguay). In terms of dimension of the agreement, this is the biggest trade deal signed for both regions. The agreement covers a population of 780 million citizens and almost a quarter of the world’s GDP (23,5%). Related to trade, the deal addresses a progressive elimination of barriers to trade in the EU over 92% of the imports coming from Mercosur within a maximum period of 10 years. Concerning Mercosur, the region will implement a tariff relief in the 91% of the imports coming from the EU in a maximum period of 15 years. In this paper, we evaluate the EU-Mercosur trade agreement and its impact on the US.