The Confederation of European Paper Industries (Cepi) calls on the European Parliament to ratify of the EU-Mercosur Partnership Agreement (EMPA), emphasising its potential to eliminate tariffs and non-tariff barriers and foster growth for European pulp and paper companies, which are some of the strongest exporters amongst EU manufacturing sectors. 

 

The proposed agreement aims to remove tariffs on over 90% of goods exchanged between the EU and Mercosur countries, including the elimination of tariffs on 85% of pulp and 90% of EU paper and board exports to Mercosur. This move opens new markets for European producers which have been in an imbalanced trade relationship with their South American counterparts. 

 

Since 2004, the EU has maintained zero import tariffs on pulp, paper, board, and related products, including those from Mercosur nations. In contrast, Mercosur countries have imposed high tariffs on European exports, creating an uneven competitive landscape. Given that the EU has already removed its tariffs for more than twenty years, the agreement should not lead to any significant surge in pulp and paper imports from Mercosur countries. 

 

While commercial ties between the EU and the United States have become tensed, EU-Mercosur exchanges of pulp and paper remain particularly interdependent. Europe is a net exporter of high-quality paper and board products globally, but it is also a significant importer of market pulp from the Mercosur, an important raw material in papermaking. 

The agreement includes a strengthened Trade and Sustainable Development (TSD) chapter with a legally binding annex. 

 

This annex sets clear commitments to halt deforestation and enhances cooperation on sustainable supply chain development. It marks the first instance where countries involved in such an agreement have made individual legal commitments on deforestation, subject to dispute settlement. Cepi underscores the importance of strict implementation and enforcement of the TSD chapter to ensure that environmental and labour standards are upheld. Both Europe's pulp and paper industry and the Brazilian forest industry have already committed to preventing illegal logging and deforestation. 

 

The ‘Mercosur agreement’ represents the EU's largest formal trade deal to date, aiming to deepen trade relations at a time when both Europe and Mercosur countries both need to diversify their partnerships. Cepi urges the European Parliament to ratify the agreement promptly, enabling it to enter into force and open new horizons for the EU. 

 

“The European pulp and paper industry believes in free trade and fair competition principles, but not only. We do not compromise on our sustainability principles and prefer to trade and compete with players who abide by the same climate, environmental and social rules that we do” says Jori Ringman, Director General of Cepi.

 

“Europe’s pulp and paper sector remains a strong exporter. We advocate for rules-based trade and reliable partnerships to remain the standard in the dynamic and fast-moving global trade landscape.”