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ECONOMY | Yesterday 17:30

Mercosur to expand common tariff exemptions as trade war rages

Mercosur countries have decided to relax common external tariffs on 50 products of the choice of each of its members, giving them more flexibility to negotiate deals.

Mercosur countries have decided to relax common external tariffs on 50 products of the choice of each of its members, giving them more flexibility to negotiate deals as they seek to avoid Donald Trump’s tariffs, or retaliate against them.

The decision was made in Buenos Aires during a meeting of foreign ministers of the bloc originally formed by Brazil, Argentina, Paraguay and Uruguay, according to a statement published Friday. 

“The ministers have agreed it’s important to face the challenges presented by the current foreign environment,” they wrote in the statement, mentioning an international scenario that’s “constantly changing.”

The request, made by Argentina at a dinner on Thursday, was well received by other Mercosur members and the need for additional exemptions was consensual, according to people familiar with the negotiations. It will be up to each country to decide which products will be added to the list of exemptions and what their tariffs will be.

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by Simone Iglesias, Bloomberg

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