The year 2020 has been a tumultuous period in global trade, with the COVID-19 pandemic presenting unforeseen challenges to international commerce. Nevertheless, the European Union (EU) has been actively engaged in negotiating and implementing trade agreements that benefit its member states and promote economic growth.
One of the most significant developments in EU trade agreements in 2020 has been the successful conclusion of negotiations with the Mercosur bloc, comprising Argentina, Brazil, Paraguay, and Uruguay. The new agreement will eliminate tariffs on 93% of goods traded between the EU and Mercosur, thereby creating a market of 780 million consumers and significantly reducing trade barriers.
However, the Mercosur deal has faced criticism from environmentalists and some EU member states due to concerns about deforestation in the Amazon rainforest and the impact on small-scale farmers. The EU has sought to address these issues through sustainable development and responsible production commitments that aim to mitigate environmental damage and promote social welfare.
Another notable agreement in 2020 has been the EU-Vietnam Free Trade Agreement (FTA), which came into force on August 1, 2020, after being ratified by all EU member states and the Vietnamese National Assembly. The FTA eliminates tariffs on 99% of EU exports to Vietnam over ten years and 65% of Vietnamese exports to the EU, creating new opportunities for trade and investment in areas such as automotive, textiles, and pharmaceuticals.
The EU has also continued to pursue trade agreements with other countries and regions, including Mexico, Chile, and the Association of Southeast Asian Nations (ASEAN). Negotiations with the UK, which formally left the EU on January 31, 2020, are ongoing, with the aim of reaching a comprehensive free trade agreement that promotes mutual economic interests.
In addition to these agreements, the EU has been working to modernize and reform its trade policy to reflect changing global dynamics and promote sustainable and inclusive growth. This has involved initiatives such as the EU`s new trade strategy, which seeks to strengthen the rules-based multilateral trading system and promote sustainable development while addressing concerns about digitalization, climate change, and the impact of trade on labor rights and social conditions.
Overall, the EU`s trade agreements in 2020 reflect a complex and evolving global trade landscape, characterized by both opportunities and challenges. Through sustainable development commitments, responsible production practices, and efforts to modernize its trade policy, the EU is seeking to promote inclusive and sustainable economic growth that benefits all its member states and contributes to global development.