In Paris and Brussels alike, the EU-Mercosur agreement remains explosive on the agricultural front, accused of weakening the industry in the face of South American production. But in other sectors, this agreement could well be beneficial to the industry, and even to the graphic arts sector, "the most important formal trade agreement ever concluded by the EU" according to the Confederation of European Paper Industries Cepi.
Tariffs: what Cepi puts forward
In a press release, the paper industry organization welcomes the announced removal of tariff barriers, which will facilitate European exports of pulp, paper, board and related products to South America, and calls on the European Parliament to ratify the EU-Mercosur partnership agreement.
The text provides for the elimination of customs duties on over 90% of goods traded between the European Union and Mercosur countries, including 85% of pulp and 90% of European paper and cardboard exports to Mercosur.
An agreement that would rebalance trade with these countries, which has been in place for 20 years
According to Cepi, these changes would rebalance a flawed trade relationship: since 2004, the European Union has eliminated import duties on pulp, paper, cardboard and related products, including from Mercosur, while Mercosur countries maintain high duties on European exports.
She points out that Europe is a net exporter of high-quality paper and board worldwide, but it also imports a significant quantity of market pulp from Mercosur, an essential raw material for paper manufacture. And given that the EU has already eliminated tariffs, this agreement should not lead to any increase in pulp and paper imports from Mercosur countries.
And this agreement would be most welcome in the current context. It would give the industry a breath of fresh air after the tightening of trade between the European Union and the United States.
Sustainability under scrutiny
Beyond tariffs, Cepi applauds the Trade and Sustainable Development chapter and its annex, announced as legally binding. The text sets out commitments to halt deforestation and provides for greater cooperation on sustainable supply chains.
The trade organization adds that these provisions will have to be strictly applied and monitored, to guarantee compliance with environmental and social standards.
"The European pulp and paper industry believes in the principles of free trade and fair competition, but not only that. We do not compromise on our sustainability principles and prefer to trade and compete with players who respect the same climate, environmental and social rules as we do." says Cepi General Manager Jori Ringman.
