The starting point was set in 1995, with a few years of interruption, but with a certain date (June 2019) when the negotiation stage of the Strategic Agreement between MERCOSUR and the European Union (EU) was concluded. The arduous years of work are the result of the asymmetries of economic development and the very conflicting commercial interests, which sealed the possibility of bilateral implementation of the Agreement for each MERCOSUR partner that ratifies it, after it is approved by the EU.
Less than a year had passed while the negotiated texts were being reviewed when one of the greatest global economic crises was unleashed by the COVID-19 pandemic. Added to this complex and delicate situation was the war between Russia and Ukraine, leaving the world in a state of shock and with a clear translation without linguistic borders: weakness in world trade and global economic activity.
In this adverse situation, which challenges the entire world, it is imperative to rethink this agreement negotiated so far away - less than 3 years ago - in light of the reality imposed today. That is to say, while this negotiating will must support certain slogans that, if absent, would distort the original purpose of the Agreement, new impact studies are required - regional and national - with an eye on those key sectors that are to be promoted.
If the general context is added to the particular Decision of the European Union-Brussels [1]—known as the “European Green Deal”—, which aims to transform the EU into a modern economy –Management in the use of resources and competitive to respond to the challenges of climate and the environment; this Agreement clearly needs a reconfiguration, which by the way will not be visible in the short term. Therefore, it is unavoidable to explore alternative paths.
A first step is to observe the roadmap drawn up at the Third Meeting of Foreign Ministers of CELAC and the EU, between the Argentine Foreign Minister, Santiago Cafiero, and the High Representative for Foreign Affairs and Security Policy of the European Union, Josep Borrell Fontelles, last October, where, when referring to the bilateral cooperation agenda between Argentina and the EU, they expressed their desire to deepen ties, emphasizing the strategic role played by energy and food production in this relationship reconfigured according to current and future needs in the short and medium term.
Undoubtedly, the first conclusion is that the EU's demands could—and should—be met by Argentina, if certain factors are met. This is what has been brewing and was announced by the representatives cited above, when outlining the axes that would culminate in the imminent signing of a "Memorandum of understanding”, which would aim to facilitate the landing of investments in Argentina with a view to strengthening the infrastructure necessary to improve and industrialize the value chains of the products that our country could export and they require —food and energy, fundamentally—. To do so, and no less necessary, it is essential to establish clear rules for the entry and exit of capital related to these concrete and real investments, which would guarantee employment, advances in science and technology; and foreign currency. But all this machinery of public policies cannot lack the balance that is needed to implement a plan of this magnitude, such as avoiding internal shortages or the escalation of prices related to global demand.
From the analysis of specific environmental policies, the EU - and all its Member States - and Argentina duly signed and ratified the Paris Agreement, thus demonstrating their commitment to the application and execution of the commitments made. On the part of the EU, its member countries have agreed to become the first climate-neutral economy and society by 2050, establishing their strategy of reducing greenhouse gas emissions by 55% by 2030 compared to 1990 levels. In relation to the global fight against climate change, Argentina in its Nationally Determined Contribution [2] established commitments and axes of work, coinciding with the principles of the EU, relating to the reduction of greenhouse gas emissions by 2030, energy transition that promotes efficiency and migration towards a clean energy matrix, productive transition relating to the promotion of national value chains linked to productive planning and innovation with a focus on climate risk management and fundamentally the sustainable mobility which tends to adapt infrastructure and transportation to the efficient use of electrical energy and progressively replace fossil fuels.
In this context, Argentina has a leading role and its commitment to environmental issues concretely demonstrates the country's intention to occupy new spaces of discussion with clear actions and a commitment to integration. The country's economic situation, in the face of a panorama of new investments and market opening, could bring relief with respect to the objective of a trade surplus, with the benefits that this entails for all national trade and industry.
The agenda is open, Argentina will hold the Pro Tempore Presidency of MERCOSUR in the first half of 2023, the individual situation of the member countries merits seeking understanding. The foundations that have been laid are operational to resume the conversations and establish new objectives consistent with the current demands that allow the members of MERCOSUR to place themselves in an offensive position, thus seeking to transform barriers into bridges.
[1] 11.12.2019 COM (2019) 640.
[2]https://www.argentina.gob.ar/ambiente/cambio-climatico/contribucion-nacional#:~:text=Las%20Contribuciones%20Determinadas%20a%20Nivel,cambio%20clim%C3%A1tico%2C%20ya%20sea%20para
Lawyer from the University of Buenos Aires (UBA). Specialization in State Law - Treasury Attorney of the Nation. Manager of Commercial Standards and Instructions of the National Commission of Foreign Trade (CNCE), a decentralized body within the Ministry of Economy. Professor of the Bachelor's Degree in International Trade, the Diploma in Customs Law and the Postgraduate Specialization in Global Business at CAECE University.
