SAO PAULO, Brazil--(BUSINESS WIRE)--The European Union (EU) – Mercosur trade agreement will result in the new economic bloc´s packaged food industry representing 28% of global retail sales by 2024.
Global market research company, Euromonitor International, launched a white paper, “EU-Mercosur Trade Agreement: opportunities for Latin America,” analyzing the impact of the agreement on the global economy.
According to the white paper, the combined packaged food industry is worth $678 billion in 2019 with Mercosur representing $119 billion and the EU $559 billion. By 2024, the bloc is expected to add an additional $51 billion in retail sales, Mercosur accounting for $23 billion and the EU for $28 billion. Together this represents Spain´s packaged food market plus more than half of Argentina’s.
The EU-Mercosur agreement strives to eliminate tariffs for 90% of traded products. When formalized, the economic bloc will account for $21 trillion of the world's global GDP, roughly 25% of the global consumer expenditure, creating a market of 776 million people.
“The EU is composed of large and mature markets and Mercosur of what are considered growth countries despite the recent economic slowdown in the region. Interestingly, both will contribute roughly the same actual value to consumer industries by 2024,” explains Marcel Motta, Brazil director at Euromonitor International in Sao Paulo.
The new white paper also discusses the impact of the agreement in the beauty and personal care industry and a case study about South Korea´s open economy compared to Brazil’s economic isolation.
To download a copy of “EU-Mercosur Trade Agreement: opportunities for Latin America,” please click here.
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