Ursula von der Leyen’s Post

I am excited to see the finalization of the EU-Mercosur Trade Agreement—a transformative pact connecting two economic giants. This agreement establishes a strategic bridge between the European Union’s 450 million consumers and Mercosur’s 260 million, creating one of the largest free-trade areas in the world. By reducing tariffs, promoting sustainable trade practices, and enhancing regulatory cooperation, the deal sets the stage for significant economic growth on both sides. For the EU, this means better access to dynamic Latin American markets, facilitating the export of goods, services, and technology. For Mercosur, the agreement promises to boost investment inflows, modernize industries, and unlock growth opportunities in areas like infrastructure, minerals (lithium), oil & gas and agriculture. As a European/Latin American lawyer advising asset managers and investors in the EU, the upcoming agreement offers exciting opportunities for cross-border investments, portfolio diversification, and growth in emerging markets.

Great progress towards the final ratification of the EU-Mercosur trade agreement! A process that has been going on for the past 25 years... Once in place, a game changer for Swedish/European companies exports to the Mercosur markets (Brazil, Argentina, Uruguay, Paraguay and Bolivia). ...but still some miles to be covered before it is all a done deal! That said, we at Business Sweden recommend Swedish companies to start prepare for their entry/expansion strategy early out. Count on our support. #businessswedenbrazil #EUMercosur #Swedishexport #SwedenBrazilPartnership

A final and conclusive step towards a new era of increased comercial activities between the EU and Mercosul member countries including Sweden and Brazil.

💚 💛 💙 + 💙 I recently arrived in Rio for the holidays, and I was welcomed by something that immediately brought a smile to my face: a huge advertisement for clean hydrogen development! Right at the first corridor of Rio De Janeiro-Galeao International Airport. It’s a small but powerful reminder of how far Brazil is going in building a more sustainable future, and it couldn't make me more proud. 2024 is almost over, it’s hard to ignore the growing challenges and uncertainties the world has faced this year. Yet, amidst these global pressures, the progress being made here in Brazil—particularly the significant international collaborations— underlines the power of partnership and innovation. This recent Mercosur-European Union agreement can foster deeper economic ties and advance sustainability across both regions --- considering the key discussions regarding the trade of sensitive products and the concerns over a push towards a “destructive neocolonial economic system” and “destructive agricultural models that displace small farmers and Indigenous communities”. "The agreement still has to be approved by EU member states and the European parliament, although the precise mechanisms have yet to be determined. The agreement is strongly supported by Germany and Spain, who see export opportunities and stronger diplomatic links." (The Guardian) Additionally, the EESC (European Economic and Social Committee) signed a Memorandum of Understanding with Brazil’s Sustainable Economic and Social Development Council during the G20 Social Summit in Rio de Janeiro, where the EESC's president advocated for governance reform and enhanced social protections alongside Brazilian President Lula. Here's to a better, more sustainable and just future for Brazil, Europe and the world! Merry Christmas and a Happy New Year!

🇪🇺🤝🇲🇨 EU-Mercosur Trade Agreement: A Game-Changer for Global Commerce. Exciting news for international trade! The EU-Mercosur agreement is set to create a massive market of over 700 million consumers. Here's are the Key Benefits: • Eliminates over 90% of tariffs, saving €4.5 billion annually. • Boosts EU exports in sectors like automotive, machinery, wine, and dairy. • Creates opportunities for businesses on both sides of the Atlantic. 🚜 Challenges to Address: • Concerns from EU agricultural sectors, particularly French and Irish farmers. • Environmental standards alignment, especially regarding Amazon deforestation. • Potential market disruptions for sensitive industries. 💼 Business Implications: This deal opens doors for companies looking to expand their reach in South America and Europe. It's a prime opportunity for strategic growth and market diversification. 🔄 Ratification Process: • The agreement requires approval from the European Parliament. • Full ratification by all 27 EU member states will also be needed. • Potential split into trade and non-trade parts to streamline approval.

☕ Coffee exports to the EU from the #EastAfricanCommunity can benefit from #ClimateSmartAgriculture. 🗞️ Read our new SEI — Stockholm Environment Institute paper by Elizabeth Sunguti, cynthia sitati, Anderson Kehbila,Alphayo Lutta,Philip Osano which shows how local growers boost yield, access global markets and address climate risks. https://lnkd.in/g4XxecnR 🪴 Support to #smallholders is key and there may be opportunities via the new Strategic Framework for International Cooperation Engagement during the Commission's proposed 12 month phasing-in period for the EU Regulation on #Deforestation-free #Supplychains https://lnkd.in/gJK3Thq7

Something missing from the discussions so far at EU Green Week - Europe's water footprint! For a #WaterWiseEU we need to think about water embedded in the goods we consume, and how to tackle this problem. The EU is highly dependent on water-intensive goods from abroad, and without policies to address this we will see a much more vulnerable Europe. Glada Lahn and I started looking at some of the ways that we can harmonize water and trade, but there is much more to be done. Have a look here: https://lnkd.in/e2JuRUht

The European Commission is considering a proposal to postpone the implementation of the EU Deforestation Regulation (EUDR) by 12 months. It was due to come into full effect in December this year. Critics argue that this is a 'serious setback for climate action', and that the delay would cause over 150,000 hectares of deforestation linked to EU trade - "an area more than fourteen times the size of Paris". But how much does the EUDR matter for #SriLanka? What are the implications for the country's exports to the EU? Read our recent Policy Brief to find out - https://lnkd.in/g6T4MRzs

Sector stakeholders in some of the countries I recently worked in - Rwanda and Kenya - will breathe a sigh of relief that the EUDR is likely to be pushed by 12 months. It only provides a bit more breathing space, but eventually compliance will be key to ensuring market access. But there is likely some trade diversion that may also happen, as a consequence of such regulations. I remember a senior Kenyan government official telling me: "The President is pushing US buyers to buy more Kenyan coffee and reduce the reliance on EU market”. Such shifts won't be easy in the short-term, as buyer partnerships are sticky and not easy to change overnight - but it does signal how producer countries are thinking. The EU, European countries' bilateral development agencies, and industry partners need to step up their technical support to improve readiness of supply chain participants - especially in Africa and Latin America - as the adjustment costs are not insignificant. Implementing technologies for traceability, digitising land use records, and ensuring supply chain transparency, will have positive impacts in the medium- to long-term, but in the short-term they impose additional costs on producers. Meanwhile, countries like Sri Lanka, though, are not that affected, as we argued in a recent Policy Brief...

The Carbon Border Adjustment Mechanism #CBAM #MACF Climate change is a global problem that needs global solutions. As the EU raises its own climate ambition, and as long as less stringent climate policies prevail in many non-EU countries, there is a risk of so-called ‘carbon leakage'. Carbon leakage occurs when companies based in the EU move carbon-intensive production abroad to countries where less stringent climate policies are in place than in the EU, or when EU products get replaced by more carbon-intensive imports. CBAM The EU’s Carbon Border Adjustment Mechanism (CBAM) is the EU's tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries. https://lnkd.in/dSyiKary