Austrian Christoph Leitl, President of the Association of European Chambers of Commerce and Industry (Eurochambres), said on Wednesday (3.10.2018) that the current moment is "crucial" to reach a free trade agreement between the European Union (EU) and Mercosur, because there is a "window" that will close soon.
Crucial elections
“There is a window of opportunity and if we do not open it now, we will lose at least three or four years. It is a crucial point because the European Union has elections to the Parliament and the appointment of a new Commission, and in Argentina and Brazil there are elections."Who will be able to negotiate at that time? Nobody," Leitl said in Buenos Aires.
Eurochambres represents 20 million companies - 98% of which are small and medium-sized enterprises - from 46 European countries and 1.700 regional chambers of commerce. According to its president, the agreement between the EU and Mercosur would increase the opportunities for European and Latin American SMEs.
Creativity
“But the agreement itself is not enough: Business communities on both sides must do something", stressed Leitl, who believes that chambers of commerce should seek out ideas and creativity, and support SMEs from the beginning in their expansion to other countries.
According to Leitl, “Great ideas emerge when companies are supported to go abroad to help them create entities".
"Our three pillars are to prepare, create and then accompany," Leitl stressed, to illustrate what his European and Latin American colleagues should do in the future if the trade agreement is signed after both blocs have dragged out negotiations unsuccessfully since 1999.
In this context, Leitl took the opportunity to ask the leaders of the world's largest economies and developing countries of the G20 to "listen to the companies" that are meeting at the B20 to then “deliver a declaration in favor of free trade” at their meeting in December.
American Protectionism
"What America (the United States) was yesterday, (Europe) is today, holding up the flag of free trade," said the president of the Brussels-based entity, referring to the protectionist policies of the US government of Donald Trump, practices that go "against" the interests of Leitl and Eurochambres.
He also argued that Trump's "threats" are "negative, they affect people and will last over time because they are sowing hatred among emerging countries in Africa and Asia", states that, according to Leitl, take a long time to forget if they are ever “pressured and caused negative emotions.”
B20
Speaking about the B20 meetings, which will begin on Thursday (4.10.2018) and continue until Friday (5.10.2018), the Austrian executive, who was president of the Federal Chamber of Commerce of his country for 18 years, assessed that they can serve to help larger companies and SMEs find common ground.
“The B20 represents mainly large companies; we, as a chamber, represent small and medium-sized companies. That means we fit together, We are complementary and not competition", said Leitl, for whom the objective of these sessions is to "raise our voice" to the G20 politicians.
Source: Reuters
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